Nigeria inflation falls again as food price hike slows

Nigeria’s inflation rate fell for the third consecutive month in June to 17.75 per cent from 17.93 per cent recorded in May, amid decelerating increase in food prices, the National Bureau of Statistics said.

The statistics office said Friday that the prices of goods and services, measured by the Consumer Price Index (CPI) increased by 17.75 per cent in June 2021 when compared to May 2021.

This is 0.18 percentage points lower than the rate obtained a month earlier.

“This implies that prices continued to rise in June 2021 but at a slightly slower rise than it did in May 2021,” NBS said.

On a month-on-month basis, the headline index increased by 1.06 per cent in June 2021. This is 0.05 percentage points higher than the rate recorded in May 2021 (1.01 per cent).

It said the composite food index rose by 21.83 per cent in June 2021 compared to 22.28 per cent in May 2021.

This implies that food prices continued to rise in June 2021 but at a slightly slower speed than it did in May 2021.

According to the NBS, this rise in the food index in June was caused by increases in the prices of bread and cereals, potatoes, yam and other tubers, milk, cheese and eggs, fish, soft drinks, vegetables, oils and fats and meat.

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It added that month-on-month basis, the food sub-index increased by 1.11 per cent in June 2021, up by 0.06 per cent points from 1.05 per cent recorded in May 2021.

“The average annual rate of change of the Food sub-index for the twelve months ending June 2021 over the previous twelve-month average was 19.72 per cent, 0.54 per cent points from the average annual rate of change recorded in May 2021 (19.18 per cent),” it said.