![[BAD TO WORSE] Fuel Scarcity Bumps Inflation rate to 2 1/2 Year High](https://i0.wp.com/nairametrics.com/wp-content/uploads/2015/07/Inflation-rate.png?fit=990%2C599&ssl=1)
The National Bureau of Statistics says the Consumer Price Index (CPI) which measures inflation rose by 9.2 percent (year-on-year), 0.2 percentage points from the 9.0 percent rate recorded in May.
Reason for Inflation rate
The bureau of statistics gave the following reasons for June’s inflation rise;
The faster pace of the Headline index was as a result of bottlenecks observed during the period which resulted in major COICOP Divisions such as Food and Non-Alcoholic Beverages and Transportation increasing at a faster pace during the period.
Through the first six months of the year, the Headline index has increased by 8.6 percent, 0.7 percentage points higher from rates recorded during the corresponding period in 2014.
Irregularity of the supply of Premium Motor Spirit (PMS) continues to impact food prices. The Food Subindex rose by 10.0 percent (year-onyear) in June, up by 0.2 percentage points from 9.8 percent in May. On a year-on-year basis, All groups which contribute to the Food sub-index increased at a faster pace during the reporting period with the exception being Oils and Fats; and Potatoes, yams and Tubers groups which increased albeit at a slower pace.
The pace of advances recorded by the “All Items less Farm Produce” or Core sub-index edged higher in June. The Core Sub-index increased by 8.4 percent (year-on-year), marginally higher from May with the highest pressures observed in the Transportation, Education and Miscellaneous Good and Services divisions. The pace of increases slowed in multiple divisions as well, such as Clothing and Footwear, Housing Water, Electricity. Gas and Other Fuels, as well as other divisions
