Inflation rate drops to 9% in May

[Mirror]

Nigeria's inflation rate dropped to nine per cent in May, representing a marginal decline from the 9.1 per cent it attained in the preceding month. This indicated that year-on-year, rates continue to hold below single digits as observed since the beginning of the year.

The report of the Composite Price Index (CPI), which measures the rate of inflation rate, released by the National Bureau of Statistics (NBS) yesterday and signed by the Statistician General of the Federation, Dr. Yemi Kale, showed that the core sub-index continues to show a muted rise due to base effects.

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, according to the statistical agency due to substantially higher price levels this time last year.

The report read: "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, while significant, are also lower year-on-year. 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-àvis April. On the other hand, the Food Sub-index indicates a slower rate of increase in food prices in May relative to April."

According to NBS, in May the composite CPI increased by a faster rate than that recorded in

The preceding month 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-onyear 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.

National Mirror