Major indices positive as inflation drops to 11-month low

The major indices used to measure the consumer price index increased slower in June than in May, a recent report released by the National Bureau of Statistics (NBS) has shown.

The inflation, which was released on Monday, showed that the inflation rate dropped to 11.22%.

This is the lowest point reached since July 2018 when it was put at 11.14%.

According to the report, food inflation slowed to 13.56% from 13.79% in May. Urban inflation slowed to 11.61% from 11.76%.

Rural inflation moved to 10.87% in June from 11.08% in May. All Items inflation (excluding food items) slowed to 8.8% from 9%.

Inflation measures the rate of increase in the prices of goods and services within an economy.

“This rise in the food index was caused by increases in prices of Bread and cereals, Meat, Oils and fats, Potatoes, yam and other tubers, Fish, Vegetables and fruits,” the report read.

“In June 2019, food inflation on a year on year basis was highest in Kaduna (17.50%), Kebbi (16.96%) and Ondo (16.44%), while Abia (10.84%), Bayelsa (9.97%) and Kogi (9.81%) recorded the slowest rise.

“On month on month basis, however, June 2019 food inflation was highest in Kogi (3.20%), River (2.96%) and Osun (2.58%), while Anambra (0.47%), Yobe (0.33%) and Kaduna (0.26%) recorded the slowest rise.”