THE Consumer Price Index (CPI) measuring inflation in the Nigerian economy
has risen to its highest point of 16.5 per cent since 2005.
Report released by the National Bureau of Statistics (NBS) shows that
inflation for the month of June spiked to its highest point since October
2005 — 11 years. Inflation rose from 15.6 percent in May 2016 to 16.5
percent in June 2016, as energy and food prices weigh in heavy on
inflation for the month.
“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.”
Asides farm produce, the core sub-index increased by 16.2% in June
(year-on-year), up approximately by 1.2% points from 15.1% recorded in
May.
“The Core sub-index has increased at a faster pace for five consecutive
months. Over the first six months of the year, the Core subindex increased
by 12.8%, up 5.2% points from rates recorded in the corresponding period
in 2015.”
Inflation has increased consistently since October 2015, with the change
in exchange rate policy, in the latter part of June expected to weigh in
on inflation for the month of July.
Goldman Sachs, an American multinational banking and investment firm,
forecasts that Nigeria’s inflation will not rise above 20 percent in 2016,
before it takes retreats to lower levels.