Nigeria’s inflation rate rises month-on-month

The rate at which the prices of good and services are increasing is rising.

Data made available by the National Bureau of Statistics on Monday showed that month-on-month inflation rose from 1.09 percentage points in May to 1.24 percentage points in June.

However, year-on-year inflation slowed from 11.61 percentage points in May to 11.23 percentage points in June, marking the 17th consecutive month of disinflation since January 2017 when inflation rate first slowed.

“Headline inflation falls 17th consecutive time (11.23% year on year in June 2018 compared to 11.61% in May 2018); food inflation(12.98% from13.45%); Core(10.4% from 10.7%). headline month-on-month inflation, however, rose 1.24% in June from 1.09% in May,” the report read.

“Highest headline year-on-year inflation in Rivers (13.82%) and lowest in Kwara(8.16%). Highest headline month-on-month inflation in Kogi(2.99%), lowest in Plateau (0.19%).”

Commenting on the inflation numbers on Channels TV, Bismarck Rewane, economic analyst, said the month-on-month inflation numbers are disturbing.

“The rate of moderation in inflation is slowing which means that we are getting close to the point of deflation,” he said.

“Inflationary pressures are going to come up. The peak problem we have today is the price of diesel and that is what is responsible for the big difference between rural and urban inflation.

“When you annualise the month on month inflation, it actually comes out at 15.94%, that is disturbing and that is going to affect the discussions at the MPC meeting today and tomorrow.

“Also important is 17 consecutive months of annual decline in inflation but it’s now getting to the point when it will start going up again. Month on month inflation is more current than year on year inflation.

“The price inflation you got today of 11.23 is actually comparing the prices of that basket of last year June to this year June. When you compare the price of that basket between May and June, you see that the actual rate of inflation has increased. When you annualise that, it comes to 15.94 which is significantly higher than 11.23 so that is the cause for worry that the inflation expectations and current inflation are pointing towards an increase.”