Inflation rises by 1.9% in May, highest since 2010

By  Wole Tokede

National Bureau of Statistics (NBS) has disclosed that inflation in the country stood at 15.6 per cent for the month of May. The statistics for the month released today shows that the rise in the headline consumer price index, which measures inflation, accelerated by 1.9 points from its April year-on-year level of 13.7 per cent.

The rate which is the highest since February 2010, when inflation also stood at 15.6 percent, the bureau attributed the rise to “an overall increase in general price level across the economy”

Core Inflation was said  to have been  driven by electricity; furniture; fuels  and lubricants; catering service; furniture; solid fuels; rent;  passenger transport and liquid fuels.

According to NBS, food continued to be more expensive, with overall prices rising 14.9 percent year-on-year from 13.2 percent in April. The NBS blamed “a drawdown of inventories across the country”.

Urban inflation year-on-year rose by 17.15 per cent in May from 15.5 per cent in April and month-on-month of 2.96 per cent from 2.17 per cent. Rural year-on-year inflation stood at 14.35 per cent in May from 12.77 per cent and a month-on-month of 2.50 per cent from 1.4 per cent.

Imported inflation rose by 18.6 per cent in May 2016 from 16.3 per cent in April 2016. Core Inflation year on year rose to 15.1 per cent in May 2016 from 13.4 per cent in April 2016 and month-on- month by 2.7 per cent in May from 1.7 per cent in April. This indicates persistent difficulties for importers to source foreign exchange because of the weak naira.

Food inflation, according to NBS was driven largely by rising prices of fish, bread, cereals, potatoes, yams and tubers, vegetables, meats, oil and fats & fruits.

The statistics captured how petrol was priced in various parts of the country in the period under review. It says that the lowest prices paid for petrol were said to have been recorded in Zamfara at N145.00, Lagos N144.75, and Kaduna N144.62 while the highest prices paid for it in May 2016 were recorded in Ebonyi N165.00, Yobe N164.17 and Benue N162.27

The statistics further shows that the average price of petrol paid by households dropped to N150.28 in May 2016 compared to N165.11 in April, a year-on -year rise of 27 per cent and month-on-month decline of -8 per cent.