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Nigeria’s inflation rate drops to 17.75% in June

The National Bureau of Statistics (NBS) has said that Nigeria's inflation rate for the month of June 2021, dropped to…

The National Bureau of Statistics (NBS) has said that Nigeria’s inflation rate for the month of June 2021, dropped to 17.75% as against 17.93% recorded in May 2021.The NBS said in its monthly report of the Consumer Price Index in Abuja on Friday that the June figure represented 0.18 percentage points lower than the rate recorded in May 2021 and that prices continued to rise in June 2021 but at a slightly slower rise than it did in May 2021.

It explained that the corresponding twelve-month year-on-year average percentage change for the urban index was 16.51 percent in June 2021. “This is higher than 16.09 percent reported in May 2021, while the corresponding rural inflation rate in June 2021 was 15.36 percent compared to 14.94 percent recorded in May 2021.

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

“On a month-on-month basis, the urban index rose by 1.09 percent in June 2021, up by 0.05 points compared to the rate recorded in May 2021 (1.04 percent), while the rural index also rose by 1.02 percent in June 2021, up by 0.04 percentage points over the rate that was recorded in May 2021 (0.98) percent,” it said.

According to the report, increases were recorded in all COICOP divisions that yielded the Headline index. The urban inflation rate increased by 18.35 percent (year-on-year) in June 2021 from 18.51 percent recorded in May 2021, while the rural inflation rate increased by 17.16 percent in June 2021 from 17.36 percent in May 2021

The composite food index rose by 21.83 percent in June 2021 compared to 22.28 percent 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,” it said.

The average annual rate of change of the Food sub-index for the twelve-month period ending June 2021 over the previous twelve-month average was 19.72 percent, 0.54 percent points from the average annual rate of change recorded in May 2021 (19.18 percent).

“This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, Yam and other Tubers, Milk, Cheese and Eggs, Fish, Soft drinks, Vegetables, Oils and fats and Meat.

“On month-on-month basis, the food sub-index increased by 1.11 percent in June 2021, up by 0.06 percent points from 1.05 percent recorded in May 2021.

“On month-on-month basis, the core sub-index increased by 0.81 percent in June 2021. This was down by 0.43 percent when compared with 1.24 percent recorded in May 2021.

“The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.09 percent in June 2021, down by 0.06 percent when compared with 13.15 percent recorded in May 2021,” it said.

According to the report, the highest increases were recorded in prices of Garments, Passenger travel by air and by road, Motor cars and Vehicle spare parts, Shoes and other footwear, Pharmaceutical products, Medical services, Hairdressing salons and personal grooming establishments, Cleaning, repair and hire of clothing, Clothing materials, other articles of clothing and clothing accessories, Furniture and furnishing and Fuels and lubricants for personal transport equipment.

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