By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)- Nigeria’s inflation rose nine (9) percent in May percent (year-on-year), 0.3 percentage points from the 8.7 percent rate recorded in April, according to the latest Consumer Price Index (CPI) and Inflation Report May 2015 by the National Bureau of Statistics (NBS).
“The faster pace of the Headline index was as a result of increases in most Classification of Individual Consumption According to Purpose (COICOP) Divisions which contribute to the Headline index, with the exception of a slower increase in the Communications Division. The faster pace of increases in the COICOP divisions were also observed in the Food and Core sub-indices,” the report said.
According to the nation’s statistics office, food prices edged higher in May as a result of the late onset of rains which have pushed back the harvest season coupled with higher transportation costs due to limited Premium Motor Spirit (PMS) availability.
It reported that the Food Sub-index rose by 9.8 percent (year-on-year) in May, up by 0.3 percentage points from 9.5 percent in April.
The NBS reported that on a month-on-month basis, the Headline index increased by 1.1 percent in May; the largest month-on-month increase recorded since June
2012 as a result of increased PMS prices and the resulting knock-on effects on the prices of other consumer items. Prices increased at a faster pace across all COICOP divisions that contribute to the index.
“In May, both the Urban and Rural Price Indices increased at a faster pace relative to April. The Urban index increased by 9.1 percent, from 8.7 percent in April, while the Rural index increased by 8.9 percent, 0.3 percentage points higher than 8.6 percent in April. On a month-on-month basis, both the Urban and Rural indices increased by 1.1 percent from 0.8 and 0.7 percent respectively recoded in April,” the report added.
The report further affirmed that the percentage change in the average composite CPI for the twelve-month period ending in May over the average of the CPI for the previous twelve-month period was 8.3 percent, marginally higher from rates recorded in April.
It noted that the corresponding 12-month year-on-year average percentage change for the Urban and Rural indices edged higher from April to 8.4 percent and 8.2 percent respectively.
