Nigeria’s inflation rate drops further to 17.93% in May 2021

Nigeria’s inflation rate dropped further for the second consecutive month to stand at 17.93% in May 2021 from 18.12% recorded in April 2021.

This is contained in the Consumer Price Index report, recently released by the National Bureau of Statistics (NBS).

According to the report, the consumer price index, (CPI) which measures the inflation rate increased by 17.93% (year-on-year) in May 2021. This is 0.19% points lower than the rate recorded in April 2021 (18.12%).

Food inflation

The closely watched index dropped from 22.72% recorded in April 2021 to 22.28% in May 2021, indicating the second consecutive decline in the food index.

On a month-on-month basis, the food sub-index increased by 1.05% in May 2021, up by 0.06% points from 0.99% recorded in April 2021.

This rise in the food index was caused by increases in prices of Bread, Cereals, Milk, Cheese, Eggs, Fish, Soft drinks, Coffee, Tea and Cocoa, Fruits, Meat, Oils and fats, and Vegetables.

Core inflation

The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.15% in May 2021, up by 0.41% when compared with 12.74% recorded in April 2021.

On a month-on-month basis, the core sub-index increased by 1.24% in May 2021. This was up by 0.25% when compared with 0.99% recorded in April 2021.

The highest increases were recorded in prices of Pharmaceutical products, Garments, Shoes and other footwear, Hairdressing salons and personal grooming establishments, Furniture and furnishing, Carpet and other floor covering.

Others include, Motor cars, Hospital services, Fuels and lubricants for personal transport equipments, Cleaning, repair and hire of clothing, Other services in respect of personal transport equipments, Gas, Household textile, and Non-durable household goods.

State inflation

- In May 2021, all items inflation on year on year basis was highest in Kogi (25.13%), Bauchi (23.02%), and Sokoto (20.11%), while Katsina (15.69%), Imo (15.52%) and Delta (14.85%) recorded the slowest rise in headline Year on Year inflation.

- Also, in terms of food inflation, Kogi State led the list with 32.82%, followed by Kwara (26.02%) and Enugu (25.43%), while Akwa Ibom (20.06%), Bauchi (18.65%) and Abuja (16.91%) recorded the slowest rise in year on year inflation.

The urban inflation rate increased by 18.51% (year-on-year) in May 2021 from 18.68% recorded in April 2021, while the rural inflation rate increased by 17.36% in May 2021 from 17.57% in April 2021.