Inflation Drops to 17.75%

The Consumer Price Index (CPI) which measures inflation – the rate of change in the increase in prices – dropped to 17.75 per cent (year-on-year) in June compared to17.93 per cent in the preceding month, the National Bureau of Statistics (NBS) stated Friday.

The NBS pointed out that the 0.18 per cent difference indicated that prices continued to rise in June but at a slightly slower increase than it did in May.

It stated that the moderation in prices were recorded in all the parameters that determine the headline index.

According to the CPI report for June which was released by the statistical agency, food inflation slowed to 21.83 per cent in June compared to 22.28 per cent in May, implying that food prices continued to rise in the review period but at a slightly slower speed compared to the previous month.

It pointed out that the rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, milk, cheese and eggs, fish, soft drinks, vegetables, oils and fats and meat.

Core inflation, which excludes the prices of volatile agricultural produce also slowed to 13.09 per cent in June, down by 0.06 per cent compared with 13.15 per cent in May.

The core index recorded the highest increases of garments, passenger travel by air and by road, motor cars and vehicle spare parts, shoes and other footwear, pharmaceutical products, medical services, hairdressing salons and personal grooming establishments

Others are cleaning, repair and hire of clothing, clothing materials, other articles of clothing and clothing accessories, furniture and furnishing and fuels and lubricants for personal transport equipment.