In its Consumer Price Index (CPI) Report for May, the National Bureau of Statistics (NBS) said that the annual inflation rate fell year-on-year (YoY) by 0.19 percent to 17.9 percent in May from 18.12 percent in April.
This however differed from financial analysts’ earlier projections of a higher inflation rate in May.
According to the NBS, food inflation also dropped YoY by 0.44 basis points to 22.28 percent in May from 22.72 percent in April.
The NBS report stated: “The consumer price index, (CPI) which measures inflation increased by 17.93 percent (YoY) in May 2021.
This is 0.19 percent points lower than the rate recorded in April 2021 (18.12 percent). Increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index.
“On a month-on-month (MoM) basis, the Headline index increased by 1.01 percent in May 2021. This is 0.04 percentage points higher than the rate recorded in April 2021 (0.97 percent).
“The urban inflation rate increased by 18.51 percent (YoY) in May 2021 from 18.68 percent recorded in April 2021, while the rural inflation rate increased by 17.36 percent in May 2021 from 17.57 percent in April 2021.
“On a MoM basis, the urban index rose by 1.04 percent in May 2021, up by 0.05 percentage points compared to the rate recorded in April 2021 (0.99), while the rural index rose by 0.98 percent in May 2021, up by 0.03 points compared to the rate that was recorded in April 2021 (0.95 percent).”
On food inflation, the report stated: “The composite food index rose by 22.28 percent in May 2021 compared to 22.72 percent in April 2021.
“This rise in the food index was caused by increases in prices of bread, cereals, milk, cheese, eggs, fish, soft drinks, coffee, tea and cocoa, fruits, meat, oils and fats and vegetables.
“On a MoM basis, the food sub-index increased by 1.05 percent in May 2021, up by 0.06 percent from 0.99 percent recorded in April 2021.”
States with highest YoY food inflation were Kogi (32.8 percent), Kwara (26. percent) and Enugu (25 percent), while Akwa Ibom (20 percent), Bauchi (18.7 percent) and Abuja (16.9 percent) recorded the slowest rise inYoY inflation.
On month on month basis however, May 2021 food inflation was highest in Kogi (3.1 percent), Ogun (2.9 percent) and Anambra (2.4 percent), while Edo, Sokoto and Ekiti recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
