MON, JULY 23 2018-theG&BJournal-The Consumer Price Index (CPI) increased by 11.23 percent (year-on-year) in June 2018, the slowest in almost two and half years with food cost climbing the least since March 2016. This is 0.37 percent points less than the rate recorded in May 2018 (11.61) percent and represents the seventeenth consecutive disinflation since January 2017.
According to the National Bureau of Statistics, the increases were recorded in all 12 Classification of Individual Consumption by Purpose (COICOP) divisions that yield the Headline index.
On a month-on-month basis, the Headline index increased by 1.24 percent in June 2018, up by 0.15 percent points from the rate recorded in May 2018.
The percentage change in the average composite CPI for the twelve months period ending June 2018 over the average of the CPI for the previous twelve months period was 14.37 percent, showing 0.42 percent point lower from 14.79 percent recorded in May 2018.
The urban inflation rate eased by 11.68 percent (year-on-year) in June 2018 from 12.08 percent recorded in May 2018, while the rural inflation rate also eased 10.83 percent in June 2018 from 11.20 percent in May 2018.
On month-on-month basis, the urban index rose by 1.24 percent in June 2018, up by 0.14 from 1.10 percent recorded in May 2018, while the rural index also rose by 1.23 percent in June 2018, up by 0.15 percent from the rate recorded in May 2018(1.08) percent.
The corresponding twelve-month year-on-year average percentage change for the urban index was 14.71 percent in June 2018. This is less than the 15.10 percent reported in May 2018, while the corresponding rural inflation rate in June 2018 was 14.08 percent compared to 14.53 percent recorded in May 2018.
The rate fall surprised analysts who anticipated otherwise after the Federal government started releasing funding for the 2018 budget of N9.12 trillion.
The Central Bank of Nigeria’s Monetary Policy Committee (MPC) is also set to announce its main rates tomorrow. Economy watchers expect no changes on the rates which has stayed steady at 14 percent since July 2016.
