Inflation rate drops by 0.99% to 16.25% in May – NBS

The National Bureau of Statistic (NBS) has said that inflation rate dropped to 16.25 per cent in May 2017, 0.99 per cent lower than 17.24 per cent recorded in April.
The Bureau explained that headline index increased by 1.88 per cent in May , 0.28 per cent points higher than the rate of 1.60 per cent recorded in April to indicate the existence of persistence pressure on prices despite the general decline in year on year inflation rate.
According to NBS report, “month-on-mont inflation has cumulatively risen by 7.7 per cent since January 2017. The percentage change in the average composite Consumer Price Index (CPI) for the twelvemonth period ending in May 2017 over the average of the CPI for the previous twelve-month period was 17.63 per cent, higher from 17.59 per cent recorded in April 2017.
“The Food Index increased by 19.27per cent in May 2017, down by 0.03 per cent points from the rate recorded in April (19.30 per cent) indicating continued pressure in food prices.
“Price movements recorded by All Items less farm produce or Core sub-index rose by 13.00 per cent (year-on-year) in May, down by 1.80 per cent points from rate recorded in April (14.80 per cent). This represents the 7th straight month of decline in the core index since November 2016
“The Urban index rose by 16.34 per cent (year-on-year) in May 2017 from 17.62 per cent recorded in April, while the Rural index increased by 16.02 per cent in May from 16.69 per cent in April.
“On month-on-month basis, the urban index rose by 1.84 per cent in May from 1.61 per cent recorded in April, while the rural index rose by 1.92 per cent in May from 1.59 per cent in April.
“The corresponding twelve-month year-on-year average percentage change for the urban index increased from 18.98 percent in April to 18.88 per cent in May, while the corresponding rural index also increased from 16.37 percent in April to 16.50per cent in May.”
NBS stated that the composite food index rose by 19.27 per cent in May2017, attributable to rise in prices of meat, bread and cereals, fish, potatoes, milk cheese and eggs as well as vegetables such as tomatoes.
“On a month-on-month basis, the Food sub-index increased by 2.54 per cent in May, up by 0.50 per cent points from 2.04per cent recorded in April.
“This represents the highest month on month change in food prices since May 2016 and cumulatively represents a rise in the food index of 10.1 per cent since January 2017.
“The Food index in May whether on a year on year basis on month on month basis therefore indicates sustained pressure on food prices since then beginning of the year following high food prices recorded the whole of 2016.
“The average annual rate of change of the Food sub-index for the twelve-month period ending in May 2017 over the previous twelve-month average was 17.48 per cent, 0.37 per cent points from the average annual rate of change recorded in April (17.11) per cent,” the report added.