Nigeria’s inflation decelerates amid global concern

Amid global worry over rising commodity prices, Nigeria’s headline inflation has slowed down to 17.75 per cent year-on-year in June. It was the third consecutive month the inflation would decelerate.

In May, the inflation rate was 17.95 per cent, which was 0.18 percentage points higher than the most recent figure contained in the consumer price index (CPI) released by the National Bureau of Statistics (NBS), yesterday.

According to the data, food inflation, which has been the driver of rising prices in the past few years, also decelerated from 22.28 per cent to 21.83 per cent in June while core inflation slowed down to 13.09 per cent, from 13.15 per cent reported in May.

The country’s headline inflation rate had accelerated consistently for over three years, hitting18.17 per cent in March, before a gradual retreat.

The immediate past Director General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, linked the recent deceleration to a base effect.

The data said the headline inflation increased by 1.06 per cent month-on-month in June as against 1.01 per cent recorded the preceding month.

“The ‘all items less farm produce’ or core inflation, which excludes the prices of volatile agricultural produce stood at 13.09 per cent in June 2021, down by 0.06 per cent when compared with 13.15 per cent recorded in May 2021. The urban inflation rate increased by 18.35 per cent (year-on-year) in June 2021, from 18.51 per cent recorded in May 2021, while the rural inflation rate increased by 17.16 per cent in June 2021 from 17.36 per cent in May 2021,” the report stated.

On a year-on-year basis, the latest figure shows inflation was highest in Kogi State with a 23.7 per cent rate while Bauchi State followed with 20.67 per cent. Jigawa State came third with 19.81 per cent inflation rate.

On the flip, Cross River, Delta and Abuja recorded the slowest inflation rate of 15.53 per cent, 15.18 per cent and 15.15 per cent respectively.