Inflation rises to 8.2% in June

Nigeria’s inflation in June edged higher to 8.2 percent from 8.0 percent in the previous month.
This is the fourth consecutive month of year-on-year increases in the Headline index since the pace of price increases eased in February.
The National Bureau of Statistics, NBS, which released the figure yesterday, attributed the increase to rise in the food prices.
The NBS report said “In June 2014, the Consumer Price Index (CPI), which measures inflation, edged higher from the previous month.
“Prices rose by 8.2 percent (year-on-year) in June, up by 0.2 percentage points from 8.0 percent recorded in May.
“The price increases recorded in June’s Headline index were as a result of an increase in all divisions that contribute to the index. Price increases were also recorded in the Food and Core sub-indices.”
Specifically, it pointed out that food prices as observed by the Food sub-index edged marginally higher to 9.8 percent from 9.7 percent in June.
“Prices were pushed higher as a result of higher prices in the Bread and Cereals, Meats, Fish, and Dairy groups. The price increases in the food sub-index were however weighed down by relatively slower increases in the Oils and Fats, Fruits and Vegetable groups,” the NBS stressed.
Prices measured by the “All items less farm produce” or Core sub-index increased at a faster rate in June.
It further said “Prices rose by 8.1 percent (year-on-year), 0.4 percentage points higher from the rate recorded in May and surpassing the previous high for the year recorded in May. Increases were observed in all non-food divisions which contribute to the core sub-index.
“It should be noted that the Headline Index is made up of the Core Index and Farm Produce items. As Processed Foods are included in both the Core and Food sub-indices, this implies that these sub-indices are not mutually-exclusive.”
On a month on month basis, price increases in the headline index eased to 0.77 percent in June, marginally lower from a 0.78 percent increase in May.
The NBS said prices increase continue to move in a side-ways fashion since the start of the year.
Also, urban prices increased at a faster rate for the second consecutive month in June to 8.4 percent, up 0.2 percentage points from May.
Rural prices also increased by 0.2 percentage points to 8.0 percent in June.
On a month on month basis, prices in the Urban areas moved at the same pace in June as in May, moving by 0.8 percentage points.
The Rural All-items indices rose albeit at a slower pace by 0.74 percent in June, down from 0.77 percent in May.
The percentage change in the average composite CPI for the twelve-month period ending in June 2014 over the average of the CPI for the previous twelve-month period was recorded at 8.0 percent, unchanged from the average twelve month rate of change recorded in May 2014. The corresponding 12-month year-on-year average percentage change for the Urban index was 8.1 percent in June, marginally lower from 8.2 percent recorded in the previous month while the corresponding Rural index firmed at 7.9 percent for the Month of June.