Nigeria’s Inflation Slows 15th Straight Time in April to 12.48%

May 15, 2018

By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s inflation rate decelerated for the 15th consecutive month in April 2018 to 12.48 percent (year-on-year), according to the National Bureau of Statistics (NBS) latest report.

“This fifteenth straight disinflation since January 2017 is 0.86 percent points less than the rate recorded in March 2018 (13.34) percent,” the NBS affirmed.

The NBS reports that their were Increases recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yield the Headline Index.

On a month-on-month basis, the Headline index increased by 0.83 percent in April 2018, down by 0.01 percent points from the rate recorded in March 2018.

According to the report, the percentage change in the average composite CPI for the twelve-month period ending April 2018 over the average of the CPI for the previous twelve-month period was 15.20 percent, showing 0.40 percent.

The NBS reports the urban inflation rate eased by 12.89 percent (year-on-year) in April 2018 from 13.75 percent recorded in March, while the Rural inflation rate also eased by 12.13 percent in April 2018 from 12.99 percent in March.

“On month-on-month basis, the urban index rose by 0.85 percent in April 2018, down by 0.01 from 0.86 percent recorded in March, while the rural index also rose by 0.82 percent in April 2018, recording no change from the figure obtained in March (0.82) percent,” the NBS said.

The corresponding twelve-month year-on-year average percentage change for the urban index is 15.47 percent in April 2018. This is less than 15.87 percent reported in March, while the corresponding rural inflation rate in April 2018 is 14.95 percent compared to 15.34 percent recorded in March.

According to the report, the percentage change in the average composite Consumer Price Index (CPI) for the twelve month period ending March 2018 over the average of the CPI for the previous twelve month period was 15.60 percent, showing 0.33 percent point lower from 15.93 percent recorded in February 2018.

The Urban inflation rate eased by 13.75 percent (year-on-year) in March 2018 from 14.76 percent recorded in February, while the Rural inflation rate also eased by 12.99 percent in March 2018 from 13.96 percent in February.

On month-on-month basis, the urban index rose by 0.86 percent in March 2018, up by 0.04 from 0.82 percent recorded in February, while the rural index also rose by 0.82 percent in March 2018, up by 0.05 from 0.77 percent recorded in February.

The corresponding twelve month year-on-year average percentage change for the urban index is 15.87 percent in March 2018. This is less than 16.24 percent reported in February, while the corresponding rural inflation rate in March 2018 is 15.34 percent compared to 15.64 percent recorded in February.

Food inflation rose by 14.80 percent yeaer-on-year in the review period, notably lower than the 16.08 percent year-on-year recorded in March.

“Core inflation was 10.9 percent y/y during the review period, vs. 11.2 percent in March. Similar to the observed trend in the previous month, the highest increases were reported in the prices of fuel and lubricants for personal transport and transport equipment, vehicle spare parts, garments and clothing materials and other articles of clothing and clothing accessories, hairdressing salons and personal grooming establishment, and paramedical services and pharmaceutical products. On a m/m basis however, the core index increased at a faster pace of 0.87 percent, 3 bps above the 0.84 percent reported in March.,” according to Cordros analysts.

Click here to download full PDF copy of NBS CPI report April 2018