Nigeria’s Records Lowest Inflation Rate In June

...Drops To 8.4%

Nigeria’s Consumer Price Index (CPI) further eased to 8.4 percent in June from its 9.0 percent in May representing a 0.6 percent drop in the country’s inflationary trend.

According the latest report released by National Bureau of Statistics and signed by the Statistician General, Mr. Yomi Kale, the Lower rates are a reflected of the average rates over the first half of this year.


During the period, the Headline, Core and Food indices averaged 8.9 per cent, 8.0 per cent and 9.9 per cent respectively.

Since the beginning of the year, inflation rates have continued at a single digit with 8.4 percent representing the lowest inflation rate recorded by Nigeria in 2013.

In January it was 9.0 percent; then it rose 9.5 percent in February. March, April and May recorded 8.6 percent, 9.1 percent and 9.0 percent, respectively.

“This was 0.6 percentage points lower than the 9.0 per cent rate recorded in May. Compared with January this year rates continue to trend lower across all three indices; the Headline, as well as the Core and Food sub-indices when they were recorded at 9.0 per cent, 11.3 per cent and 10.1 per cent respectively,” the report said.

The CPI measures the average change over time in prices of goods and services consumed by people in day-to-day living.

On the other hand, food prices increased at a faster rate in June compared to May due to the planting season. Food supplies continue to be tight as inventories decline, creating upward pressure on prices.

NBS noted that the Headline Index is made up of the Core Index and Farm Produce items

On a month-on basis, increases in price levels in the headline index moved roughly at the same pace in June as recorded in May.

“The composite Food index increased year-on-year by 9.6 per cent to 147.5 points in June.

“This was 0.3 percentage points higher than the 9.3 per cent recorded in May.

“On a month-on basis, the food sub-index increased by 0.7 per cent between May and June.”

The average annual rate of rise of the Food sub-index for the twelve-month period ending in June 2013 was 10.4 per cent when compared with the same period in 2012, marginally lower from the 10.5 per cent recorded in May.

According to NBS, the highest food increases were exhibited in the Fruits, Oils and Fats, Bread and Cereals, and Vegetables classes.

In June, Core index increased by 5.5 per cent year-on-year.
This was 0.7 percentage points lower from the 6.2 per cent recorded in May. The core continues to exhibit muted year-on-year changes largely due to base effects.
On a month-on-month basis, the Core sub-index exhibited a relative moderation as it increased by 0.3 per cent in June. This was 0.2 percentage points lower than 0.5 per cent recorded in May.