The National Bureau of Statistics has released its May Consumer Price Index (CPI) indicating that inflation rate jumped to 15.6% for the month compared to 13.7% recorded in April. The headlines rate thus rose by a full 190 basis points over the prior period as cost of goods and services continue to rise in all parts of the country.
The last time Nigeria recorded an inflation rate this high was in February 2010 when it was coincidentally 15.6% in February 2010. Here are the highlights;
- The increase in rates in May relative to April reflects an overall increase in general price level across the economy as all divisions which contribute to the Headline index increased at a faster pace in May.
- Year on year, Electricity rates as well as other energy prices continue to manifest as key drivers of the Core component of the CPI. The Core sub- index increased by 15.1% in May, up by 1.7% points from rates recorded in the previous month.
- During the month, the highest increases were seen in the Passenger Transport by Road, Liquid Fuel (kerosene), Fuels and Lubricants for Personal Transport Equipment (Premium Motor Spirit) and Vehicle Spare Parts groups.
- Imported foods as well as a drawdown of inventories across the country continue to push food prices higher. The Food sub index increased by 14.9% in May, up by 1.7% points from rates recorded in April as all major food groups which contribute to the Food sub-index increased at a faster pace driven by higher food prices in Fish, Bread and Cereals, and Vegetables groups for the second consecutive month.
- In addition, the Imported Food sub-index increased by 18.6% in May, 2.2% points from rates recorded in April.
- Month-on-month, after a brief respite in rates in March and April, the rates recorded by the Headline Index increased at a faster pace in May. The index increased by 2.8%, up by 1.1% points relative to rates recorded in April.
This month’s inflation rate further confirms the pass on effects of the increase in energy cost ranging from, diesel, fuel and electricity tariffs. Prices of goods and services have essentially doubled for a lot of Nigerians. However, this is not reflected in the inflation numbers as the basket contains other heavily weighted goods and services in the index that haven’t risen as much as the others.
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