Higher food prices push inflation to 8% in May

Nigeria’s consumer inflation rose to 8 percent in May as against 7.9 percent in April due to higher prices in groups that contributed to both food and core sub-indices, the National Bureau of Statistics (NBS) said yesterday.

Food index, the biggest contributor to the inflation, rose to 9.7 percent year-on-year in May, up from 9.4 percent in the previous month.

The monthly statistics report issued by the Statistician General Dr. Yemi Kale stated that since a decline of the headline index in January, prices continued to trend upwards, albeit at a slow pace, increasing by 0.1 percentage points (year-on-year) each month between February and May.

“The price increases seen in May were as a result of higher prices in groups that contribute to both the Food and Core sub-indices.

“Specifically, Food prices edged higher to 9.7 percent, up from 9.4 percent in April. Prices were pushed higher as a result of higher prices in the Bread and Cereals, Fish, Dairy, Fruits, and Vegetable groups. The price increases in the food subindex were however weighed down by relatively slower increases in the Meats, Oils and fats, and, Potatoes, and Yams and other tubers classes.”

Groups that contributed to the increase in the core sub-index include furniture and furnishings, garments, rental prices, as well as liquid and solid fuels. Prices measured by the “All items less farm produce” or core sub-index increased at a faster rate in May from April. Prices rose by 7.7 percent (year-on-year), which was 0.2 percentage points higher from the rate recorded in April. This is the highest year-on-year rate recorded for the core sub-index this year.

On a month-on-month basis, price increases in the headline index have risen and fallen since the start of the year. Prices increased by 0.78 percent in May, higher than rates recorded in April by roughly 0.2 percentage points. The month-on change also matched the highest month-on-month increase recorded this year (in March).

Urban prices increased at a faster rate in May, 8.2 percent, up 0.3 percentage points from April, after growing at a constant rate in March and April (7.9 percent year-on-year). Rural prices increased by 7.8 percent in May, also up by 0.3 percentage points from April, and the fastest since January 2014.

On a month-on-month basis, movements in the urban and rural indices have largely mirrored the headline index this year. In May, the urban and rural all-items indices rose by 0.8 percent and 0.77 percent respectively, representing 0.2 percentage points higher than rates recorded in April. The report also stated that “All-item less farm produce” which excluded the prices of volatile agricultural products, increased at the fastest rate recorded this year by 7.7 percent which was higher than the rate recorded in April by 0.2 percentage points.