National Bureau of Statistics Inflation rate rose by 12.40 percent in May 2020, up by 0.06 percent points higher than the 12.34 percent recorded in April 2020. The consumer price index, (CPI) which measures inflation, released Wednesday by the National Bureau of Statistics (NBS), showed that price increases were recorded in all divisions that yielded the headline index. Inflation rate up 12.34% in April, highest in 23 months Analysts predict higher inflation rates Daily Trust observed that on month-on-month basis, the headline index increased by 1.17 percent in May 2020, this is 0.15 percent rate higher than the 1.02 percent recorded in April 2020. The percentage change in the average composite CPI for the twelve months period ending May 2020 over the average of the CPI for the previous twelve months period was 11.79 percent, showing 0.08 percent point from 11.71 percent recorded in April 2020.. The report showed that the urban inflation rate increased by 13.03 percent in May 2020 from 13.01 percent recorded in April 2020, while the rural inflation rate increased by 11.83 percent in May 2020 from 11.73 percent in April 2020. Meanwhile, on a month-on-month basis, the urban index rose by 1.18 percent in May 2020, up by 0.12 points from 1.06 percent recorded in April 2020, while the rural index also rose by 1.16 percent in May 2020, up by 0.18 points from the 0.90 points recorded in April 2020. The corresponding twelve-month year-on-year average percentage change for the urban index is 12.36 percent in May 2020. This is higher than 12.26 percent reported in April 2020, while the corresponding rural inflation rate in May 2020 is 11.26 percent compared to 11.20 percent recorded in April 2020. Analysis showed that the composite food index rose by 15.04 percent year on year in May 2020 compared to 15.03 percent in April 2020. ”This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Oils and fats, Fruits, Fish and Meat”, NBS explained. On month-on-month basis, the food sub-index increased by 1.42 percent in May 2020, up by 0.24 percent points from 1.18 percent recorded in April 2020. On the other hand, core inflation, which excludes the prices of volatile agricultural produce stood at 10.12 percent in May 2020, up by 0.14 percent when compared with 9.98 percent recorded in April 2020. On month-on-month basis, the core sub-index increased by 0.88 percent in May 2020. This was down by 0.05 percent when compared with 0.93 percent recorded in April 2020. ”The highest increases were recorded in prices of pharmaceutical products, medical services, repair of furniture, hospital services, passenger transport by road, motor car, bicycles, maintenance and repair of personal transport equipment, passenger transport by sea and inland waterways, paramedical services, motorcycles and hairdressing salons and personal grooming establishment,” NBS stated.
About Author
