Inflation rate in Nigeria drops to lowest level in 2013

The National Bureau of Statistics on Tuesday released the Consumer Price Index report for the month of June, which showed the country's inflation rate now stood at 8.4 per cent.

The CPI in January was 9.0 per cent; it moved to 9.5 per cent in February; while March, April and May recorded 8.6 per cent, 9.1 per cent and 9.0 per cent, respectively. The 8.4 per cent is the lowest inflation rate to be recorded by the country in the 2013 fiscal period.

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

In the report, which was signed by the Statistician-General of the Federation, Dr. Yemi Kale, the bureau said the June inflation rate was 0.6 percentage points lower than the 9.0 per cent rate recorded in May.

The bureau said since the beginning of this year, inflation rates had continued to trend lower across all three indices of headline, core and food.

It said when the year began, headline, core and food sub-indices were 9.0 per cent, 11.3 per cent and 10.1 per cent, respectively, adding that the three averaged 8.9 per cent, 8.0 per cent and 9.9 per cent, respectively in June.

Relative to the month of May, the slower rise in the headline index was attributed to slower rises in all classification of individual consumption according to purpose classes (except the food and non-alcoholic beverage class).

This, it stated, resulted in the muted rise of the core sub-index as well.

On the other hand, food prices increased at a faster rate in June compared to the previous month as the country is deep into the planting season. Food supplies continue to be tight as inventories decline, creating upward pressure on prices

The report read in part, 'In June, the CPI, which measures inflation, rose by 8.4 per cent year-on-year.

'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.

'Lower rates are further reflected in 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.

'This is lower than the average over the same period last year, which were recorded at 12.5 per cent, 14.1 per cent and 11.8 per cent, respectively.'