On Monday, July 18, the National Bureau of Statistics released the Consumer Price Index which measures inflation, stating that Nigeria’s inflation rate has risen from 15.6 per cent in May to 16.5 per cent in June.
The cause of the rise in inflation was attributed to increase in prices of electricity, kerosene, furniture and furnishing materials, passenger transport by road, fuel and lubricants as well as transport equipment.
“In June, the Consumer Price Index (CPI) which measures inflation continued to record relatively strong increases for the fifth consecutive month. The Headline index increased by 16.5% (year-on-year), 0.9% points higher from rates recorded in May (15.6%),” NBS said.
“Most COICOP divisions which contribute to the headline index increased at a faster pace, the increase was however weighed upon by a slower increase in three divisions; Recreation & Culture, Restaurant & Hotels, and Miscellaneous Goods & Services Year on year, energy prices, imported items and related products continue to be persistent drivers of the core sub-index.
“The Core index increased by 16.2% in June, up by approximately 1.2% points from rates recorded in May (15.1%). During the month, the highest increases were seen in the electricity, liquid Fuel (kerosene), furniture and furnishings, passenger transport by road, fuels and lubricants for personal transport equipment,” the Bureau added.
The 16.5 per cent increase in inflation rate represents one of the highest increases to be recorded by the country since October 2005.