Inflation spikes by 12.40% as foods, transport, others cost more

By Omobayo Azeez

Nigerians have spent more money in May to access foods and other basic consumption categories they need to meet their daily needs.

The consumer price index (CPI), which measures inflation, increased by 12.40 per cent year-on-year (YoY) in May, 2020.

This is according to May inflation report released on Wednesday by the National bureau of Statistics, which shows 0.06 per cent rise in the latest from 12.34 recorded in April.

Increases were recorded in all Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the headline index.

On month-on-month basis, the headline index increased by 1.17 per cent in May 2020, representing 0.15 per cent higher than the rate recorded in April 2020 (1.02) percent.

The percentage change in the average composite CPI for the twelve months period ending May 2020 over the average of the CPI for the previous twelve months period was 11.79 per cent, showing 0.08 percent point from 11.71 percent recorded in April 2020.

The urban inflation rate increased by 13.03 per cent (year-on-year) in May 2020 from 13.01 per cent recorded in April 2020, while the rural inflation rate increased by 11.83 per cent in May 2020 from 11.73 percent in April 2020.

On a month-on-month basis, the urban index rose by 1.18 per cent in May 2020, up by 0.12 points from 1.06 per cent recorded in April 2020, while the rural index also rose by 1.16 per cent in May 2020, up by 0.18 points from the rate recorded in April 2020 (0.90 per cent).

The corresponding twelve-month year-on-year average percentage change for the urban index is 12.36 per cent in May 2020.

This is higher than 12.26 percent reported in April 2020, while the corresponding rural inflation rate in May 2020 is 11.26 per cent compared to 11.20 percent recorded in April 2020.

The composite food index rose by 15.04 per cent year on year in May 2020 compared to 15.03 per cent in April 2020.

This rise in the food index was caused by increases in prices of bread and cereals, Potatoes, Yam and other tubers, Oils and fats, Fruits, Fish and Meat.

On month-on-month basis, the food sub-index increased by 1.42 per cent in May 2020, up by 0.24 per cent points from 1.18 per cent recorded in April 2020.

The average annual rate of change of the food sub-index for the twelve-month period ending May 2020 over the previous twelve-month average was 14.33 per cent, 0.11 points from the average annual rate of change recorded in April 2020 (14.22 per cent).

“In May 2020, food inflation on a year on year basis was highest in Abuja (18.13 per cent), Osun (17.40 per cent) and Imo (17.13 per cent), while Abia (13.46 per cent), Bauchi (12.97 per cent) and Kaduna (12.97 per cent) recorded the slowest rise,” according to the report.

In terms of all items less farm produce, the highest increases were recorded in prices of pharmaceutical products, medical services, repair of furniture, hospital services, passenger transport by road, motor car, bicycles, maintenance and repair of personal transport equipment, passenger transport by sea and inland waterways, paramedical services, motorcycles and  hairdressing salons and personal grooming establishment.