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Nigeria’s Inflation Rate Hits 12.56% In June; Food Experience Surge

Nigeria's Inflation Rate

Nigeria’s Inflation rate has risen by 12.56% in June 2020. This is according to a Consumer Price Index (CPI) report issued by the National Bureau of Statistics (NBS), stating that it was 0.16% points higher than the rate recorded in May 2020 (12.4%). 

Consumer Price Index (CPI) which measures inflation also showed that composite food index rose to 15.18% compared to 15.04% recorded in May 2020 while Core inflation, which excludes the prices of volatile agricultural produce stood at 10.13% in June 2020 compared to 10.12% recorded in May 2020.

It, however, stated clearly that increase was recorded in all COICOP divisions that yielded the Headline Index. There was an increase in the Headline index by 1.21% in June 2020 compared to its rate in May 2010, which was 1.17%.  

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Core Inflation

The core inflation can also be referred to as ”All items less farm produce” – excluding the prices of volatile agricultural produce. The CPI report had it at 10.13% in June 2020, which was slightly up 0.01% when compared with 10.12% recorded in May 2020.

However, there was a slight increase in the core sub-index by 0.86% in June 2020. Juxtaposing it with a 0.88% increase in May 2020, it was down by 0.02%.

CPI Report On Food Inflation:

The food index of 15.18% experienced some slight level of increase compared to 15.04% in May 2020.

However, the food sub-index experienced a 1.48% increase in June 2020, up by 0.06% points from 1.42% recorded in May 2020.

One of the major effects of the rise in the food index is the relative increase in the prices of tubers, fruits, oils and fats, meat, fish, vegetables, bread and cereals, potatoes, and yam. 

The Major Inflation Drivers:

Medical/hospital services, passenger transport by road, pharmaceutical products, motor cars, and paramedical services experienced the highest increase. Also, vehicle spare parts, transport equipment, and other services in respect of personal transport equipment weren’t left out of the increase. 

The Report According To States

Bauchi (15.02%) had the highest in terms of inflation in June 2020, followed by Sokoto state (14.88% rate), with Ebonyi (14.6%) trailing them behind, as well as Plateau (14.49%) and Taraba state (13.95%).

Meanwhile, it will please you to know that, Kwara state (10.03%) recorded the least all items inflation rate (year-on-year) followed by Lagos (10.78%). The list also had Cross River (10.95%), trailing behind with the likes of Abuja (11.02%) and Borno (11.11%).

However, this month’s CPI report shows that the purchasing power of consumers has further worsened and their ability to afford the same quantity of goods or services has reduced significantly.

Can this report on Nigeria’s Inflation Rate be due to the negative impact of the COVID-19 pandemic on the economy? Leave us your comment and let’s sip from your cup of thoughts.

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