Nigeria’s Inflation Rate Moderates In May

Nigeria’s inflation rate moderated by 0.19 percent to 17.93 percent in the month of May compared to the 18.12 percent recorded in the previous month.

Gatekeepers News reports that on month-on-month basis, the headline index increased by 1.01 percent in May 2021, an 0.04 percentage points higher than the rate recorded in April 2021 (0.97 percent).

Food inflation dropped from 22.72 percent recorded in April 2021 to 22.28 percent in May 2021, according to the report released by the National Bureau of Statistics (NBS) on Tuesday.

This was driven by increases in prices of Bread, Cereals, Milk, Cheese, Eggs, Fish, Soft drinks, Coffee, Tea and Cocoa, Fruits, Meat, Oils and fats and Vegetables.

“In May 2021, food inflation on a year on year basis was highest in Kogi (32.82%), Kwara (26.02%) and Enugu (25.43%), while Akwa Ibom (20.06%), Bauchi (18.65%) and Abuja (16.91%) recorded the slowest rise in year on year inflation,” the report added.

“On month on month basis however, May 2021 food inflation was highest in Kogi (3.11%), Ogun (2.89%) and Anambra (2.37%), while Edo, Sokoto and Ekiti recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).

Gatekeepers News  reports that the ‘All items less farm produce’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.15% in May 2021, up by 0.41% when compared with 12.74% recorded in April 2021.

The highest increases were recorded in prices of Pharmaceutical products, Garments, Shoes and other footwear, Hairdressing salons and personal grooming establishments, Furniture and furnishing, Carpet and other floor covering.