Food inflation spirals to 19.91% in June —NBS

Defying the general inflationary trend, which continues to point southwards in the last five months, Composite Food Index (CPI) was again on the rise to 19.91 per cent as National Bureau of Statistics (NBS) releases its inflation figures for June 2017.

Overall however, Consumer Price Index (CPI), which measures inflation increased by 16.10 per cent (year-on-year) in June 2017, a 0.15 percent points lower than the 16.25 per cent recorded in May.

NBS noted that rise in the food index was caused by increases in prices of meat, bread and cereals, fish, potatoes, yam and other tubers, oils and fats, milk, cheese and eggs, coffee, tea and cocoa.

“On a month-on-month basis, the Food sub-index increased by 1.99 per cent in June, up by 0.64 per cent points from 2.54 percent recorded in May.

“The average annual rate of change of the Food sub-index for the twelve-month period ending in June 2017 over the previous twelve-month average was 17.87 per cent, 0.39 per cent points from the average annual rate of change recorded in May (17.48) per cent.”

The Selected Food Prices Watch, another report released also on Monday for the same month reflected that the average price of one dozen of medium size agric eggs increased year-on-year by 35.42 per cent and decreased month-on-month by 1.54% to N514.66 in June 2017 from N522.71 in May 2017 while the average price of piece of Agric eggs medium size (price of one) increased year-on-year by 32.40 per cent and decreased month-on-month by 1.00% to N45.28 in June 2017 from N45.73 in May 2017.

“Average price of 1 kg of tomato increased year-on-year by 9.74 per cent and month-on-month by 10.39 per cent to N375.00 in June 2017 from N339.72 in May 2017.

“Average price of 1kg of rice (imported high quality sold loose) increased year-on-year by 23.56 per cent and month-on-month by 1.29 per cent to N415.84 in June 2017 from N410.55 in May 2017.

“Similarly, the average price of 1kg of yam tuber increased year-on-year by 32.84 per cent and month-on-month by 4.62% to N292.06 in June 2017 from N279.15 in May 2017.”

Gari and mudfish are the two items with the highest rates of increase with while gari rising by 74.3 per cent; yellow gari by 76.66 per cent and dried mudfish 57.06 per cent.

CPI report revealed “this represents the fifth consecutive decline in the rate of inflation since January 2017.

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

Headline inflation measures total inflation including items such as food and energy, which are usually more volatile and prone to inflationary spikes.

Percentage change in the average composite CPI for the twelve-month period ending in May 2017 over the average of the CPI for the previous twelve-month period was 17.58 per cent, lower from 17.63 per cent recorded in May 2017.

The Food Index was however, down by 0.64 percent points from the rate recorded in May (19.27 per cent) indicating continued pressure in food prices.

The Urban index rose by 16.15 per cent (year-on-year) in June 2017 from 16.34 per cent recorded in May, while the Rural index increased by 16.01 per cent in June from 16.02 per cent in May.