Nigeria’s inflation rate slightly down to 9% in May
The National Bureau of Statistics (NBS) has said Nigeria’s inflation rate for the month of May on a year-on-year basis was slightly lower than the level attained in the previous month by about 0.1 per cent.
The decline represents a marginal difference from the 9.1 per cent it attained last April, an indication that the year-on-year rates continue to hold below single digits as since the beginning of the year.
The Composite Price Index (CPI), which measures the rate of inflation rate, by the NBS and approved by the Statistician General of the Federation, Yemi Kale, showed that the core sub-index continues to show a slow rise due to base effects.
The statistics agency said the year-on-year muted changes for the rest of the year in the Core Index may be sustained until the end of the year due to substantially higher price levels this time last year.
“As stated in the April 2013 CPI Report, the year-on-year changes in the Core index for the rest of the year are likely to be muted as a result of substantially higher price levels this time last year. The increase in food prices captured by the Food Sub-index are also lower year-on-year,” the agency said.
“Through the first five months of 2013, the Food Sub-index has averaged 10.0 per cent, 1.8 per cent lower than rates recorded over the same period last year.
“Relative to April, the rise in the headline index could be attributable to higher prices in all 12 COICOP divisions. Higher, prices were also reflected in the Food and Core sub-indices. All divisions (except the Food and Non-Alcoholic Beverages) rose faster that levels exhibited in April. This is also reflected in the faster month-on-month rates in the Core sub index in May vis-à-vis April. On the other hand, the Food Sub-index indicates a slower rate of increase in food prices in May relative to April,” the NBS added.
Besides, the agency said the composite CPI for May increased by a faster rate than that recorded in April, as the index increased by 0.67 per cent, compared to the 0.5 per cent in April.
The Urban composite CPI was recorded at 144.5 points in May, a 9.4 per cent year-on-year change which was lower than the 9.7 per cent recorded in April. Similarly, the Rural National CPI also recorded an 8.6 per cent year-on-year change, lower than the 8.9 per cent in April by 0.3 percentage points.
The Urban All-item index increased in May by 0.6 per cent, roughly the same rate as recorded in the preceding month on a month-on-month basis, while the Rural All Items index increased from levels recorded in April by 0.5 per cent.
The statistical agency reported further that the percentage change in the average Composite CPI for the twelve-month period ending in May 2013 over the average of the CPI for the previous twelve-month period was recorded at 10.8 per cent. The corresponding 12-month year-on-year average percentage change for the Urban index was 12.6 per cent, while the corresponding Rural index was 9.5 per cent.
The Composite Food Index increased year-on-year by 9.3 per cent to 146.4 points in May, representing 0.7 percentage points lower than the 10.0 per cent recorded in April.
The NBS reported that food index increased by 0.5 per cent between April and May, as food prices continue to exhibit increases across all classes in the food sub-index largely due to dwindling supplies in face of a relatively stable demand. It attributed the increases to meats, oils and fats, and potato, yams and other tubers classes whose prices rose the highest in the month under review.
The “All items less Farm Produce” or Core index, which excludes the prices of volatile agricultural products, increased by 6.2 per cent year-on-year in May, a rate which was lower than the 6.9 per cent recorded in the preceding month by 0.7 percentage points. This indicated the third consecutive month of muted year-on-year changes in the Core sub-index due to base effects.
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