Inflation climbed to 12.56% in June from 12.4% in May, its highest level in more than two years, according to latest report Friday by the National Bureau of Statistics (NBS).
The report shows that in June 2020, all items inflation on year on year basis was highest in Bauchi (15.02%), Sokoto (14.88%) and Ebonyi (14.60%), while Cross River (10.95%), Lagos (10.78%) and Kwara (10.03%) recorded the slowest rise in headline Year on Year inflation.
“On a month on month basis, however, all items inflation was highest in Bauchi (1.95%), Sokoto (1.89%) and Kogi (1.83%), while Delta (0.56%), Borno and Kwara (0.45%) and Ekiti (0.40%) recorded the slowest rise in headline month on month inflation. In June 2020, food inflation on a year on year basis was highest in Sokoto (17.88%), Plateau (17.04%) and Abuja(16.82%), while Lagos (13.46%), Ogun (13.18%) and Bauchi(12.86%) recorded the slowest rise. On month on month basis however, June 2020 food inflation was highest in Kogi (3.07%), Benue (2.41%) and Zamfara (2.24%), while Ondo (0.47%), Anambra (0.42%) and Lagos (0.18%) recorded the slowest rise”.
According to the NBS, “the consumer price index, (CPI) which measures inflation increased by 12.56 percent (year-on-year) in June 2020. This is 0.16 percent points higher than the rate recorded in May 2020 (12.40) percent. Increases were recorded in all COICOP divisions that yielded the Headline index.”
It added: “On month-on-month basis, the Headline index increased by 1.21 percent in June 2020. This is 0.04 percent rate higher than the rate recorded in May 2020 (1.17 percent). The percentage change in the average composite CPI for the twelve months period ending June 2020, over the average of the CPI for the previous twelve months period was 11.90 percent, representing a 0.11 percent point increase from 11.79 percent recorded in May 2020.
“The urban inflation rate increased by 13.18 percent (year-on-year) in June 2020 from 13.03 percent recorded in May 2020, while the rural inflation rate increased by 11.99 percent in June 2020 from 11.83 percent in May 2020. On a month-on-month basis, the urban index rose by 1.23 percent in June 2020, up by 0.05 from 1.18 percent recorded in May 2020, while the rural index also rose by 1.19 percent in June 2020, up by 0.03 from the rate recorded in May 2020 (1.16) percent. The corresponding twelve-month year-on-year average percentage change for the urban index was 12.50 percent in June 2020. This is higher than 12.36 percent reported in May 2020, while the corresponding rural inflation rate in June 2020 was 11.36 percent compared to 11.26 percent recorded in May 2020. The composite food index rose by 15.18 percent in June 2020 compared to 15.04 percent in May 2020. This rise in the food index was caused by increases in prices of Bread and Cereals, Potatoes, Yam and other tubers, Fruits, Oils and Fats, Meat, Fish and Vegetables.
“On month-on-month basis, the food sub-index increased by 1.48 percent in June 2020, up by 0.06 percent points from 1.42 percent recorded in May 2020. The average annual rate of change of the Food sub-index for the twelve-month period ending June 2020 over the previous twelve-month average was 14.46 percent, representing a 0.13 percent points increase from the average annual rate of change recorded in May 2020 (14.33 percent). The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.13 percent in June 2020, up by 0.01percent when compared with 10.12 percent recorded in May 2020. On month-on-month basis, the core sub-index increased by 0.86 percent in June 2020.
“This was down by 0.02 percent when compared with 0.88 percent recorded in May 2020. The highest increases were recorded in prices of Medical services, Hospital services, Passenger transport by road, Pharmaceutical products, Motor cars, Paramedical services, Maintenance and repair of personal transport equipment, Bicycles, Motor cycles, Vehicle spare parts and Other services in respect of personal transport equipment. The average 12-month annual rate of change of the index was 9.37 per cent for the twelve-month period ending June 2020; this is 0.1 percent points higher than 9.27 percent recorded in May 2020.”