Inflation drops to 16.10% — first time in 12 months

The consumer price index (CPI), which measures inflation, has dropped for the fifth consecutive month to stand at 16.10%.

This signals a recovery of the economy.

According to a data released by the Nigerian Bureau of Statistics (NBS), the last time the country’s inflation figures were in this region was between May and June 2016 when the figures stood at 15.58 and 16.48 respectively.

“The consumer price index (CPI) which measures inflation increased by 16.10% (year-on-year) in June 2017. This was 0.15% points lower the rate recorded in May (16.25%). Accordingly, this represents the fifth consecutive decline in the rate of inflation since January 2017,” the inflation report released by the NBS read.

“On a month-on-month basis, the headline index increased by 1.58% in June 2017, 0.30 percent points lower than the rate of 1.88% recorded in May 2017. Month-on-Month inflation has cumulatively risen by 9.28% since January 2017.

“The food index increased by 19.91% (year-on-year) in June 2017, down by 0.64% points from the rate recorded in May (19.2%) indicating continued pressure in food prices.

“Price movements recorded by All Items less farm produce or Core sub-index rose by 12.50% (year-on-year) in June, down by 0.50% points from rate recorded in May (13%). This represents the 8th straight month of decline in the core index since November 2016.”

In August 2016, the economy slipped into its worst recession in three decades.