At 12.4%, Nigeria’s Inflation Rises For 9th Straight Month In May

The National Bureau of Statistics (NBS), on Wednesday, released Nigeria’s Consumer Price Index (CPI) showing that inflation for the month of May inched 0.06% up to 12.4% year-on-year, from the previous 12.34%, the ninth consecutive monthly rise.

On month-on-month basis, the Headline index climbed by 1.17% in the period under review, up 0.15% from the 1.02% rate recorded in April 2020.

The growth was caused once more by the continued spike in food inflation, which climbed 15.04% yoy, a marginal growth from 15.03% in the previous month, following increases in the prices of bread and cereals, potatoes, yam and other tubers, oils and fats, fruits, fish and meat. Compared to April 2020, food inflation expanded by 24bps, to 1.42% month-on-month.

Core inflation grew by 10.12%, pressured by the prices of pharmaceuticals, medical services, repair of furniture, hospital services, passenger transport by road, motor car, bicycles, maintenance and repair of personal transport equipment, passenger transport by sea and inland waterways, paramedical services, and motorcycles, among others. On a month-on-month basis, the core index was down by 5bps 0.88%.

While urban inflation rate increased by 13.03% (year-on-year) in May 2020 from 13.01% in April, the rural inflation rate was up 11.83% in May, as against 11.73% in April.

MoM, the urban index rose by 1.18% in May 2020, up by 0.12 points from 1.06% in April 2020, while the rural index also rose by 1.16% in May 2020, up from 0.90%.

Across the states, all items inflation YoY in May was at its peak in Rivers at 14.69%; followed by Bauchi, 14.91%; and Ebonyi, Kogi and Plateau, all of which recorded 13.87% growth. On a month on month basis however, all items inflation in May was highest in Bayelsa, 2.33%; Delta, 2.03%; and Ebonyi, 2.00%, while it was at its slowest rise in Zamfara at 0.35%; Akwa Ibom, 0.47%; and Oyo, 0.48%.

Headline Inflation rate was at its lowest level in Kwara at 10.58%; Adamawa, 11.10%; and Benue, 11.13% Year on Year.

Food inflation on a year on year basis in May was highest in Abuja, Osun, and Imo, with 18.13%, 17.40%, and 17.13% respectively, while Kaduna recorded the slowest growth of 12.97% YoY; ahead of Bauchi, 12.97%; and Abia, 13.46%.

On month on month basis, however, May 2020 food inflation was highest in Ebonyi in 3.43%; Bayelsa, 3.21%; and Edo, 2.74%; while Abia recorded the slowest growth of 0.21%; followed by Zamfara, 0.22%; while Akwa Ibom recorded “price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate.”