At 15.6%, inflation hits highest since 2010

The consumer price index (CPI), which measures inflation, for May 2016 has risen to its highest point since February 2010.

According to the Nigerian Bureau of Statistics, the inflation rate has worsened consistently since President Muhammadu Buhari took office in May 2015, rising to 15.6 percent in May 2016.

Of the 12 months spent so far, inflation has risen every month but one, moving from nine percent in May 2015 to 15.6 percent in May.

“In May, the Consumer Price Index (CPI) which measures inflation recorded a relatively strong increase for the fourth consecutive month. The Headline index increased by 15.6% (year-on-year), 1.9% points higher from rates recorded in April (13.7%),” NBS said in its monthly report on inflation released on Tuesday.

“The increase in rates in May relative to April reflects an overall increase in general price level across the economy as all divisions which contribute to the Headline index increased at a faster pace in May.”

The bureau said electricity and public transportation hikes drove inflation significantly in May.

“Year on year, electricity rates as well as other energy prices continue to manifest as key drivers of the Core component of the CPI. The Core subindex increased by 15.1% in May, up by 1.7% points from rates recorded in the previous month.

“During the month, the highest increases were seen in the passenger transport by road, liquid fuel (kerosene), fuels and lubricants for personal transport equipment (premium motor spirit) and vehicle spare parts groups.”