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Nigeria’s inflation rate hits 11-yr high of 16.5%

Senator Udoma Udo Udoma, Minister of Budget and National Planning,
Senator Udoma Udo Udoma, Minister of Budget and National Planning,
The June report of the National Bureau of Statistics (NBS) Consumer Price Index (CPI) which
measures inflation rate, has indicated a sharp rise by 0.9 percent to 16.5 per cent from the 15.6 percent recorded in May, representing its highest point since 2005.
Report released by the NBS, Monday, shows that inflation for the month of June soared to its highest point since October 2005 , 11 years ago, as energy and food prices weighed in heavy on inflation for the month.
“In June, the Consumer Price Index (CPI) which measures inflation continued to record relatively strong increases for the fifth consecutive month. The Headline index increased by 16.5% (year-on-year), 0.9% points higher from rates recorded in May (15.6%),” NBS said.
“Most COICOP divisions which contribute to the headline index increased at a faster pace, the increase was however weighed upon by a slower increase in three divisions; Recreation & Culture, Restaurant & Hotels, and Miscellaneous Goods & Services Year on year, energy prices, imported items and related products continue to be persistent drivers of the core sub-index.
“The Core index increased by 16.2% in June, up by approximately 1.2% points from rates recorded in May (15.1%). During the month, the highest increases were seen in the electricity, liquid Fuel (kerosene), furniture and furnishings, passenger transport by road, fuels and lubricants for personal transport equipment.”
Asides farm produce, the core sub-index increased by 16.2% in June (year-on-year), up approximately by 1.2% points from 15.1% recorded in May.
“The Core sub-index has increased at a faster pace for five consecutive months. Over the first six months of the year, the Core subindex increased by 12.8%, up 5.2% points from rates recorded in the corresponding period in 2015.”
Inflation has increased consistently since October 2015, with the change in exchange rate policy, in the latter part of June expected to weigh in on inflation for the month of July. Goldman Sachs, an American multinational banking and investment firm, forecasts that Nigeria’s inflation will not rise above 20 percent in 2016, before it takes retreats to lower levels.

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