AMINA HUSSAINI and OMOTAYO ARAOYE
THE Consumer Price Index (CPI) increased in June 2020 pushing the inflation rate to 12.56 percent (year-on-year) representing a 0.16 percent points higher than 12.40 percent, the rate in May 2020.
This National Bureau of Statistics (NBS) in its report released Friday noted increases were recorded in all Classification of Individual Consumption by Purpose (COICOP )divisions that yielded the Headline index.
Inflation rise in Nigeria has been on the high side in ten months straight since September 2019 with the highest point in over two years since (13.34) percent was recorded in March 2018.
Like Nigeria, other African countries have recorded an increasing inflation rate while the rate dropped in others.
Rwanda recorded a 10.3 percent inflation rate in June, rising from 9.9 percent of May while Ethiopia’s inflation rate moved from 19.8 percent in May to 21.6 percent in June.
Others that recorded an increasing inflation rate in June are Angola 22.62 percent, Congo 15.9 percent, and others.
Ghana’s inflation rate dropped by 0.1 percent from 11.3 percent of May to 11.2 percent in June, Zambia dropped to 15.9 percent from 16.6 percent and Zimbabwe dropped from 786 percent in May to 737 percent in June.
Owing to the Covid-19 pandemic that restricts movement, farmers have difficulty accessing their farms to evacuate farm produce and this is reflective in the food inflation which rose in June with the highest recorded in Kogi, Benue, and Zamfara.
Also, the report showed that the urban inflation rate increased to 13.18 percent (year-on-year) in June 2020 from 13.03 percent recorded in May 2020, while the rural inflation rate increased to 11.99 percent in June 2020 from 11.83 percent in May 2020.
The composite food index rose by 15.18 percent in June 2020 compared to 15.04 percent in May 2020. This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, fruits, oils and fats, fish, and vegetables.
The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.13 percent in June 2020, up by 0.01percent when compared with 10.12 percent recorded in May 2020.
The NBS report showed that the highest recorded in prices were of medical services, hospital services, passenger transport by road, pharmaceutical products, motor cars, paramedical services, maintenance and repair of personal transport equipment, Bicycles, motorcycles, vehicle spare parts, and other services in respect of personal transport equipment.
According to the NBS report, in June 2020, all items inflation on year on year basis was highest in Bauchi (15.02 percent ), Sokoto (14.88 percent ) b and Ebonyi (14.60 percent ), while Cross River (10.95 percent ), Lagos (10.78 percent ) and Kwara (10.03 percent ) recorded the slowest rise in headline Year on Year inflation.
On a month on month basis, however, all items inflation was highest in Bauchi (1.95 percent), Sokoto (1.89percent ) and Kogi (1.83 percent ), while Delta (0.56 percent ), Borno and Kwara (0.45 percent ) and Ekiti (0.40percent ) recorded the slowest rise in headline month on month inflation.
In June 2020, food inflation on a year on year basis was highest in Sokoto (17.88 percent ), Plateau (17.04percent ) and Abuja(16.82 percent), while Lagos(13.46 percent ),Ogun (13.18 percent ) and Bauchi(12.86 percent) recorded the slowest rise.
On month on month basis, however, June 2020 food inflation was highest in Kogi (3.07 percent ), Benue (2.41percent ) and Zamfara (2.24 percent ), while Ondo (0.47 percent ), Anambra (0.42 percent ) and Lagos (0.18percent ) recorded the slowest rise.
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