The composite price index dropped to about 8.4 per cent.
Nigeria’s Composite Price Index (CPI), which measures the average change in price level in the market for goods and services, witnessed a slide to about 8.4 per cent last June, the National Bureau of Statistics (NBS) has said.
The new level is about 0.6 percentage points lower than the 9.0 per cent rate recorded in May, the Bureau said in its latest edition of the National Statistical News released in Abuja.
The NBS noted that the decline in the headline index when compared with the price level of the preceding month could primarily be attributable to the slower rise in all Classification of Individual Consumption Purpose (COICOP) classes, which resulted in the muted rise of the Core sub-index as well.
However, the report noted that the slower rise contrasted with changes in the food and non-alcoholic beverages class prices, which increased at a faster rate compared to the previous month, as the country was deeper into the planting season.
This, the Bureau reported, caused food supplies to continue to be tight, as inventory declined, creating upward pressures on prices.
The NBS stated that on a month-on basis, increases in price levels in the headline inflation index moved roughly at the same pace in June as recorded in the preceding month, leading to the composite CPI, which increased by 0.59 per cent in June, down by 0.09 percentage points from 0.67 per cent recorded in May.
Similarly, the urban composite CPI was recorded at 145.5 points in the month under review, revealing an 8.4 per cent year-on-year change, which was a percentage point lower than the 9.4 per cent recorded in the preceding month, just as the corresponding Rural National CPI recorded an 8.3 per cent year-on-year change, lower from the 8.6 per cent recorded in May by 0.3 percentage points.
“On a month-on-month basis, the Urban All-item index picked up slightly from the previous month’s rate of change by increasing by 0.7 per cent (compared to the 0.6 per cent recorded in May), while the Rural All Items index increased by roughly the same rate as in May; 0.5 per cent,” the report said.
“The percentage change in the average Composite CPI for the twelve-month period ending in June 2013 over the average of the CPI for the previous twelve-month period was recorded at 10.4 per cent. The corresponding 12-month year-on-year average percentage change for the Urban index was 12.0 per cent, while the corresponding Rural index was 9.2 per cent”, it added.
A further analysis of the Composite Food Index, showed that in the month under review, it increased year-on-year by 9.6 per cent to 147.5 points in June, indicating 0.3 percentage points higher than the 9.3 per cent recorded in the preceding month.
On a month-on basis, the Bureau reported that the food sub-index increased by 0.7 per cent between May and June.
Food prices continue to gain upward momentum as the country is deep into the planting season, adding that markets are facing tight supplies of farm produce as inventory levels continue to dwindle creating upward pressure on prices.
It linked increases in fruits, oils and fats, bread and cereals, and vegetables classes as accounting for the highest food increases, adding that “all items less Farm Produce” or Core index, which excludes the prices of volatile agricultural products, increased by 5.5 per cent year-on-year, indicating 0.7 percentage points lower from the 6.2 per cent recorded in May.
It, however, noted that the core continues to exhibit muted year-on-year changes largely due to base effects.
On a month-on-month basis, the Core sub index exhibited a relative moderation as it increased by 0.3 per cent in the month under review, a rate that is 0.2 percentage points lower than 0.5 per cent recorded in the preceding month.
The Bureau noted that significant price increases were observed in the Actual and Imputed Rental prices, Clothing Materials and Accessories, Liquid and Solid fuels classes.
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