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Headline Inflation Drops to 11.23% in June 2018; 0.37% Lower Than May 2018 Rate

Nigeria Economy	4228 VIEWS
Nigeria Economy
4228 VIEWS

Monday, July 23, 2018 /08:15 AM / NBS

All Item Index

The Consumer Price Index (CPI) which measures inflation increased by 11.23 percent (year-on-year) in June 2018. This is 0.37 percent points less than the rate recorded in May 2018 (11.61) percent and represents the seventeenth consecutive disinflation since January 2017. Increases were recorded in all COICOP divisions that yield the Headline index.

On a month-on-month basis, the Headline index increased by 1.24 percent in June 2018, up by 0.15 percent points from the rate recorded in May 2018.

The percentage change in the average composite CPI for the twelve months period ending June 2018 over the average of the CPI for the previous twelve months period was 14.37 percent, showing 0.42 percent point lower from 14.79 percent recorded in May 2018.

The urban inflation rate eased by 11.68 percent (year-on-year) in June 2018 from 12.08 percent recorded in May 2018, while the rural inflation rate also eased 10.83 percent in June 2018 from 11.20 percent in May 2018.

On month-on-month basis, the urban index rose by 1.24 percent in June 2018, up by 0.14 from 1.10 percent recorded in May 2018, while the rural index also rose by 1.23 percent in June 2018, up by 0.15 percent from the rate recorded in May 2018(1.08) percent.

The corresponding twelve-month year-on-year average percentage change for the urban index was 14.71 percent in June 2018. This is less than the 15.10 percent reported in May 2018, while the corresponding rural inflation rate in June 2018 was 14.08 percent compared to 14.53 percent recorded in May 2018.

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Food Index

The composite food index rose by 12.98 percent in June 2018 (13.45% in May 2018). This rise in the food index was caused by increases in prices of Potatoes, yam and other tubers, Bread and cereals, Fish, oils and fats, Milk, Cheese and Eggs, Vegetables, Fruits and Meat.

On a month-on-month basis, the food sub-index increased by 1.57 percent in June 2018, up by 0.24 percent points, from 1.33 percent recorded in May 2018.

The average annual rate of change of the Food sub-index for the twelve-month period ending June 2018 was 17.75 percent, down 0.61 percent points from the average annual rate of change recorded in May 2018 (18.36) percent.

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All Items Less Farm Produce

The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce was 10.4 percent in June 2018, down by 0.3 percent from the rate recorded in May 2018 (10.7) percent.

On month-on-month basis, the core sub-index increased by 1.03 percent in June 2018, up by 0.05 percent when compared with 0.98 percent recorded in May 2018.

The highest increases were recorded in prices of Fuels and Lubricants for personal transport equipment, Garments, Domestic services and household services, Books and stationeries, Actual and imputed rentals for housing, Tobacco, Vehicle spare parts, Hairdressing saloons and personal grooming establishment, Pharmaceutical products, Dental services, Maintenance and repair of personal transport equipment, Paramedical services, Hospital services.

The average 12-month annual rate of change of the index was 11.65 percent for the twelve-month period ending June 2018; this is 0.18 percent points lower than 11.83 percent recorded in May.

State Profiles

In analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.

All Items Inflation

In June 2018, all items inflation on a year on year basis was highest in Rivers (13.82%), Kebbi (13.61%) and Adamawa (13.41%), while Kwara (8.16%), Benue (9.28%) and Plateau(9.49%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis however, June 2018 all items inflation was highest in Kogi (2.99%), Oyo (2.50), and Gombe (2.01%), while Plateau (0.19%), Kaduna (0.22) and Edo (0.41%) recorded slowest rise on a month on month all item basis in June 2018.

Food Inflation

In June 2018, food inflation on a year on year basis was highest in Bayelsa (15.90%), Rivers (15.54%) and Abuja (15.44%), while Benue (8.92%), Plateau (10.42%) and Borno (10.21%) recorded the slowest rise in food inflation.

On a month on month basis however, June 2018 food inflation was highest in Kogi (5.05%), Oyo (3.54%) and Gombe (2.75%), while Edo (0.01%) recorded the slowest rise, and Kwara and Kaduna all recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in June 2018.

Click Here to Download June 2018 CPI PDF Report