Food Prices Rose By 21.83% As Nigeria’s Inflation Rate Decreases To 17.75%

Food Prices Rose By 21.83% As Nigeria’s Inflation Rate Decreases To 17.75%

July 16, 2021

The National Bureau of Statistics, NBS, says Nigeria’s inflation rate has declined to 17.75% (year-on-year) in June, 2021 from 17.93 recorded in May 2021.

According to the agency, this is 0.18 percentage points lower than the rate recorded in May 2021 (17.93) percent. (This implies that prices continued to rise in June 2021 but at a slightly slower rise than it did in May 2021).

This was disclosed in the agency’s CPI report released on Friday.

“Increases were recorded in all  Classification of individual consumption by purpose (COICOP) divisions that yielded the Headline index”.

“On month-on-month basis, the Headline index increased by 1.06 percent in June 2021. This is 0.05 percentage points higher than the rate recorded in May 2021 (1.01 percent)”.

NBS noted that the percentage change in the average composite CPI for the twelve months period ending June 2021, over the average of the CPI for the previous twelve months period was 15.93 percent, representing a 0.43 percentage point increase over 15.50 percent recorded in May 2021.

“The urban inflation rate increased by 18.35 percent (year-on-year) in June 2021 from 18.51 percent recorded in May 2021, while the rural inflation rate increased by 17.16 percent in June 2021 from 17.36 percent in May 2021”.

“On a month-on-month basis, the urban index rose by 1.09 percent in June 2021, up by 0.05 points
compared to the rate recorded in May 2021 (1.04 percent), while the rural index also rose by 1.02 percent in June 2021, up by 0.04 percentage points over the rate that was recorded in May 2021 (0.98) percent”, the report added.

Meanwhile the composite food index rose by 21.83 percent in June 2021 compared to 22.28 percent in May 2021. This implies that food prices continued to rise in June 2021 but at a slightly slower speed than it did in May 2021.)

The average annual rate of change of the Food sub-index for the twelve-month period ending June 2021 over the previous twelve-month average was 19.72 percent, 0.54 percent points from the average annual rate of change recorded in May 2021 (19.18 percent).

This 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.

On month-on-month basis, the food sub-index increased by 1.11 percent in June 2021, up by 0.06 percent points from 1.05 percent recorded in May 2021.