INFLATION NOW 16.48%

Inflation rate in Nigeria as measured through monthly composite index compiled by the National Bureau of Statistics hit 16.48% in June compared to 15.58% the previous month.

According to the figures released today, July 18, the composite index came under pressure upwards mainly from significant increases in electricity, household water and related prices, furniture and fittings, road transport, imported food prices, and fuels and lubricants.

At 184.77 for June the index thus added 10 points within six months since by January it stood at 174.45.

This has been the trend more or less since 2015. In 2009, it took about 14 months to add the same 10 points, about eleven months through 2011 and by 2012 it took about 8 months.

The years between 2013 and early 2015, inflation rate was mostly single digit and barely able to add one percentage point in six months.

Now since February 2016 it has added one percentage point each month and indeed, in May and June shifted to plus 1.5 percentage points per month.

By June too more item groups had indices which indicated prices were now at least twice higher than they were in November 2009, the base month.

The all items index itself finally crossed the 200 mark in June under pressure from electricity, water etc which crossed since April and still rising, food index which at 205.30 was in its second month above 200 mark just like food and non alcoholic beverage and imported food.

Still rising slowly were the prices for communication, restaurants and hotels and recreation. Indeed, these are still quite a distance from 200 mark although was below 100.

Surprisingly, from the food index, surprisingly, urban food prices seem to be growing at a slower pace compared to rural ones. While rural food prices have since May doubled prices ruling by November 2009, Urban food index only came to 203.04 in June.

In terms of indices per state plus Abuja, the states most hit by higher food prices and indeed, higher indices for all items were Kogi, Bayelsa, Abia, Oyo, Akwa Ibom and Lagos.

Indeed, of the 37 states plus Abuja FCT, only Kogi had crossed the 200 mark by June 2015 but by May 2016, 19 had crossed and by June the total was 31.

Yet to record food prices that were on the average twice November 2009 level were Ebonyi, Ekiti, Kebbi, Nassarawa, Niger and Sokoto.

This month of July the year on year inflation rate is likely continue to rise given price levels of petrol, kerosene, diesel, food and items. It will also not be too surprising if this month the clothing and footwear index finally crosses 200. It is one of the ones growing relatively fast since this year and by June had 195.8 index.
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