NIGERIAN INFLATION RATE NOW 15.6%.

According to latest figures from the National Bureau of Statistics (NBS), the Nigerian composite consumer index (CPI) rose by 15.6% in May 2016 year on year.
This also compared very unfavourably with 13.72% year on year recorded in April.
In may last year, the inflation rate as measured by the same CPI basket was 9% and indeed, inflation stayed withing single digit up to January this year when 9.6% was recorded.
Since then however, it has been climbing higher and higher. It crossed into double digit by February at 11.4% then added approximately one percentage unit per month in March and April to close at 12.8% and 13.72% respectively.
Come May, however, it added 2.8% to land at 15.6% year on year rise.
According to the NBS the pressure this time was more from leaps in the price of food items like fish, vegetables and cereals, higher electricity and energy prices and manufacturers and importers draw down of inventories.
As a matter of fact, compared to base year 2009, CPI in May indicated that prices of items in the basket were now almost twice their levels by November 2009, the base month.
Indeed, some of the groups of items in the basket have since early this year crossed this bar. In particular, housing, water, energy and related items crossed the bar back in March and by May while the CPI was reading 198.3, their index was 217.42.
In addition, food prices hit 202.46 index by May just like Non alcoholic beverages which had 201.72 index by May.
At the bottom of the composite index scale by May were Communication with 133.18; re recreation 158.37 and alcoholic drinks and tobacco 169.72.
However, the additional point worth noting is the fact that since 2009 base month of November, the CPI has hardly recorded a drop year on year, what has changed now is the higher rate of increase both year on year and particularly, month on month.
Most affected were urban prices which by May had year on year growth of 17.2% and 12.7% month on month. The rural areas were still a bit insulated from the leaping prices as year on year inflation by May came to 2.9% and 2.5% when compared to April index.

Comments

  1. Ajibola Amzat17 June 2016 at 12:15

    Good analysis, but how can we make business reporting more captivating to read for the figure-shy audience.
    I suggest it may be useful to always explain what this figure means. For instance, if inflation rises at this rate, it means Nigerians would now buy a bowl of rice at N250 instead of N150. I think this kind of illustration may help the audience a lot better.I salute your consistency and sense of commitment. Cheers

    ReplyDelete
  2. Ajibola Amzat17 June 2016 at 12:16

    Good analysis, but how can we make business reporting more captivating to read for the figure-shy audience.
    I suggest it may be useful to always explain what this figure means. For instance, if inflation rises at this rate, it means Nigerians would now buy a bowl of rice at N250 instead of N150. I think this kind of illustration may help the audience a lot better.I salute your consistency and sense of commitment. Cheers

    ReplyDelete

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