Nigeria’s Inflation Rate Drops To 16.25%
Nigeria’s inflation figure declined to 16.25 percent in May, down from 17.28 percent in April, National Bureau of Statistics, reveals.
The data released today by the National Bureau of Statistics shows that the Consumer Price Index, which measures inflation, fell to 16.25 percent.
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The data also shows that on a month-on-month basis, the headline index increased by 1.88 percent in May 2017, 0.28 percent points higher than the rate of 1.60 percent recorded in April 2017, indicating the existence of persistence pressure on prices despite the general decline in year-on-year inflation
Food inflation increased by 19.27 percent year-on-year in May 2017, but it was down by 0.03 percent points from the rate recorded in April of 19.30 percent indicating continued pressure on food prices.
The rise in the food index, according to the NBS, was caused by increases in prices of meat, bread and cereals, fish, potatoes, milk cheese and eggs as well as vegetables such as tomatoes.
It would be recalled that a UK-based research and ñnancial analysis organization, World Economics, had in April declared Nigeria’s economy out of recession.
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An excerpt from their publication read:
“April Sales Managers’ Index (SMI) data suggests that the Nigerian economy is continuing to grow out of the recession which saw 10 months of consecutive contraction in 2016.
“The Market Growth Index grew to 58.5 in April as the monthly Sales Growth Index ticked up to 56.7, its highest value since 2015 and representative of rapid growth
“Price inflation for April, which is tracked by the Prices Charged Index, remained high at 58.7 – indicative of high levels of inflation, however, a slowing trend has developed for the past 9 months.
“Panelists have explained that although conditions remain difficult for businesses, they are adapting to the challenges and the recent changes to the Naira’s FX rate are aiding sales transactions.
“Overall, conditions in Nigeria have improved further over the past month and managers are expressing renewed optimism that the economy will continue to grow and regain strength after the recession.”
NSB in August last year officially announced that Nigeria was going through her worst economic recession ever in 29 years. According to the NBS, the country’s Gross Domestic Product (GDP) contracted by 2.06% to record its lowest growth rate in three decades – meaning that the GDP shrunk by 0.36%.
The shrunk was linked to the slump in oil prices on the world market – a situation which has been worsened for Nigeria by renewed insurgency in the Niger Delta region, the attacks on oil installations continues to disrupt production of oil in the region.
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According to World Bank data, the last time Nigeria had this magnitude of economic decline was under the regime of Ibrahim Babangida, when the economy recorded consecutive decline of 0.51 percent and 0.82 percent in first and second quarters of 1987.