In­fla­tion rate hits 11-year high to 16.5% in June

Daily Trust - - BUSINESS - By Fran­cis Arinze Iloani

Nige­ria’s in­fla­tion rate rose to 16.5 per­cent in June, the high­est rate recorded in the coun­try in 11 years.

The Con­sumer Price In­dex (CPI), which mea­sures in­fla­tion, re­leased yes­ter­day by the Na­tional Bureau of Sta­tis­tics (NBS) in­di­cated in­fla­tion rate rose from 15.6 per cent recorded in May to 16.5 per­cent in June.

The lat­est in­fla­tion rate is the high­est recorded in Nige­ria since June 2005 and the NBS blamed it on ris­ing prices of en­ergy and sky­rock­et­ing prices of im­ported items.

“Dur­ing the month, the high­est in­creases were seen in the elec­tric­ity, kerosene, fur­ni­ture, fur­nish­ings, pas­sen­ger trans­port by road, fu­els and lu­bri­cants for per­sonal trans­port equip­ment,” the re­port re­vealed.

A sep­a­rate re­port on petrol price re­leased yes­ter­day by the NBS showed that Nige­ri­ans bought petrol at an av­er­age price of N149 per litre in June, which was higher than the N145 per litre ap­proved by the fed­eral govern­ment and higher than the N145 per litre Nige­ri­ans re­port­edly bought the prod­uct in May.

As an in­di­ca­tion of what pushed up the in­fla­tion rate, the lat­est re­port showed that res­i­dents of Borno, Taraba and Adamawa bought petrol at the high­est prices of N173, N160 and N157 re­spec­tively.

Res­i­dents of Zam­fara State bought petrol at the least price of N144 per litre while res­i­dents of Plateau and Oyo fol­lowed at N145 per litre each.

An­other re­port on diesel price also re­leased yes­ter­day by the NBS showed that the price of the prod­uct has been sky­rock­et­ing.

Nige­ri­ans re­port­edly bought diesel at an av­er­age price of N183 per litre in June, up from N148 they bought the prod­uct in May.

Analysis of the re­port showed that while most prices which con­trib­ute to the in­fla­tion rate in­creased at a faster pace, the in­crease was how­ever weighed upon by a slower in­crease in recre­ation, cul­ture, res­tau­rant, hotels and mis­cel­la­neous goods and ser­vices.

The re­port re­vealed that the core in­dex in­creased by 16.2 per­cent in June, up by ap­prox­i­mately 1.2 per­cent­age points from the 15.1 per­cent recorded in May.

The re­port showed that while im­ported foods con­tinue to in­crease at a faster pace, the food sub in­dex on the ag­gre­gate in­creased, al­beit at a slower pace in June rel­a­tive to May.

The in­dex in­creased by 15.3 per­cent in June up by 0.4 per­cent points from rates recorded in May.

Analysis of the re­port re­vealed that the in­dex was weighted upon by a slower in­crease in prices of veg­eta­bles, su­gar, jam, honey, choco­late and con­fec­tionery items.

Month-on-month, the Head­line in­dex has moved in a side­ways fash­ion since Fe­bru­ary, the first month of a pro­nounced in­crease in rates this year.

Specif­i­cally in June, the in­dex in­creased by 1.7 per­cent, lower by roughly 100 ba­sis points from rates recorded in May.

Glob­ally, South Sudan has the high­est in­fla­tion rate at 309.60 per­cent fol­lowed by Venezuela with 180.90 per­cent, Suri­name with 55 per­cent, North Korea with 55 per­cent and Syria with 48.09 per­cent. AERO AZMAN AIR

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