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