Nigeria: Food Prices Remain High Despite 16.25% Inflation Drop in May

The National Bureau of Statistics (NBS) on Tuesday said Nigeria’s inflation dropped to 16.25 per cent in May from 17.24 per cent in April.

The NBS made this known in its “Consumer Price Index (CPI) May 2017” report released on Thursday in Abuja.

According to the bureau, this is the fourth consecutive decline in the rate of inflation since January.

On a month-on-month basis, the bureau stated that the Headline index increased by 1.88 per cent in May 2017, 0.28 percent points higher than the rate of 1.60 per cent recorded in April 2017.

It stated that food inflation increased by 19.27 per cent (year-on-year) in May 2017, down by 0.03 percent points from the rate of 19.30 percent recorded in April.

On a month-on-month basis, the bureau stated that the food sub-index increased by 2.54 percent in May, up by 0.50 percent points from 2.04 per cent recorded in April.

The bureau said rise in the food index was caused by increases in prices of meat, bread and cereals, fish, potatoes, milk cheese and eggs as well as vegetables such as tomatoes.

The percentage change in the average composite CPI for the 12 months period ending in May 2017 over the average of the CPI for the previous 12 months period was 17.63 per cent.

“This is against 17.59 per cent recorded in April 2017, it said.”

It said the urban index rose by 16.34 percent (year-on-year) in May 2017 from 17.62 per cent recorded in April.

Accordingly, the rural index increased by 16.02 percent in May from 16.69 percent in April.

On a month-on-month basis, it stated that the urban index rose by 1.84 percent in May from 1.61 percent recorded in April, while the rural index rose by 1.92 percent in May from 1.59 percent in April.

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

The construction of the CPI combines economic theory, sampling and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy. (NAN)