Home Business Nigeria’s headline inflation slows in May, drops 19bp to 17.93% Y-o-Y

Nigeria’s headline inflation slows in May, drops 19bp to 17.93% Y-o-Y


By Audrey Lotechukwu

TUE 15 JUNE, 2021-theGBJournal- Nigeria consumer prices dropped to 17.93% in May 2021, 0.19 percent points lower than the rate recorded in April 2021 (18.12 percent), the National Bureau of Statistics (NBS) reported today.

The outturn is 8bps lower than Cordros’ estimate (18.01% y/y) and 27bps less than Bloomberg’s median consensus estimate (18.20% y/y), with the deviation coming from the core basket.

On a month-on-month basis, headline inflation increased by 4bps to 1.01%.

Food inflation slowed down by 44bps to 22.28% y/y in May 2021 (April: 22.72% y/y). Notably, the highest price increases were recorded in Bread, Cereals, Milk, Cheese, Eggs, Fish, Soft drinks, Coffee, Tea and Cocoa, Fruits, Meat, Oils and fats and Vegetables. On a month-on-month basis, food inflation was higher at 1.05% in April (April: 0.99%).

Contrary to the declines seen in the headline and food indices, core inflation rose by 41bps to 13.15% y/y. Pressures were most significant in the prices of Pharmaceutical products, Garments, Shoes and other footwear, Hairdressing salons and personal grooming establishments, Furniture and furnishing, Carpet and other floor covering, Motor cars, Hospital services, Fuels and lubricants for personal transport equipment, Cleaning, repair and hire of clothing, Other services in respect of personal transport equipment, Gas, Household textile and Non durable household goods.

Compared to the previous month, the core index increased by 25bps to 1.24% m/m in May.  

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