Inflation falls to 11.61% for 16th consecutive month – NBS
Nigeria’s inflation rate has fallen for the 16th consecutive month to 11.61 per cent in May from the 13.34 per cent recorded in April this year. The Consumer Price Index (CPI) released yesterday by the NBS indicated that the latest inflation rate is 0.87 per cent points less than the rate recorded in April.
The report shows that increases were recorded in all items that yield the Headline Index. Bismarck Rewane’s Financial Derivatives Company (FDC) forecasted 11.8 per cent inflation rate for May while Bloomberg Consensus predicted 12.5 per cent for the same period. FSDH Merchant Bank Limited also projected a dip in inflation rate to 11.5 per cent in May 2018, which is 0.1 per cent less than the 11.61 per cent declared by the NBS for the same month.
Analysis of the NBS report show that on a month-on-month basis, the Headline index increased by 1.09 per cent in May 2018, up by 0.26 per cent points from the rate recorded in April 2018.
The percentage change in the average composite CPI for the 12 months period ending May 2018 over the average the average of the CPI for the previous 12 months period was 14.79 per cent, showing 0.41 per cent point lower from 15.20 per cent recorded in April 2018.
On month-on-month basis, the urban index rose by 1.10 per cent in May 2018, up by 0.25from 0.85 per cent recorded April, while the rural index also rose by 1.08 per cent in May 2018, up by 0.26 per cent from the rate recorded in April (0.82) per cent.
The corresponding 12 -month year-on-year average percentage change for the urban index is 15.10 per cent in May 2018. This is less than 15.47 per cent reported in April, while the corresponding rural inflation rate in May 2018 is 14.53 per cent compared to 14.95 per cent recorded in April.