UPDATED: Nigeria’s consumer price index spikes 12.56% as food and healthcare cost weigh

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Nigeria’s consumer price index (CPI) increased by 12.56% (year-on-year) in June 2020, The National Bureau of Statistics (NBS) reports seen by Naija247news shows.

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The increase is 0.16% higher than the 12.40% recorded in May 2020, according to an NBS report published on Friday, July 17.

On a month-on-month basis, the headline index increased by 1.21% in June, 0.04% higher than the 1.17% recorded in May.

The urban index rose by 1.23%, on a month-on-month basis, while the rural index rose by 1.19%.

The composite food index rose by 15.18% in June 2020, with the highest, on a month-on-month basis, recorded in Kogi, Benue, and Zamfara.

Ondo, Anambra, and Lagos recorded the slowest rise in the price of food items on a month-on-month basis, according to the NBS report.

“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, meat, fish and vegetables,” the report read.

On a year-on-year basis, the inflation for non-agricultural produce rose only slightly from 10.12% in May to 10.13% in June, but dropped slightly by 0.02% to 0.86% in June on a month-on-month basis.

The highest increases were recorded in prices of medical services, hospital services, passenger transport by road, pharmaceutical products, motor cars, paramedical services, maintenance and repair of personal transport equipment, bicycles, motor cycles, vehicle spare parts and other services in respect of personal transport equipment.

The CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living.

10,534 respondents spread across the country usually provide price data for regularly priced market items of 740 goods and services.

June’s inflation point is the highest in over two years since 13.34% was recorded in March 2018.

The current upward trend in inflation started in September 2019 around the time President Muhammadu Buhari closed Nigeria’s land borders allegedly because of the activity of smugglers.

The outbreak of the coronavirus disease (COVID-19) that has interrupted economic activities all over the world is also believed to have also played a part.

The central bank is due to meet on Monday to set interest rates after it last week depreciated the naira by 5.5% against the dollar on the official market, its second adjustment in six months.

Rising inflation has caused yields on Treasury bills and bonds to turn negative, a major stumbling block for the central bank’s push to attract foreign inflows to support the naira and boost the economy.

The statistics office said prices of medical services, pharmaceutical products, transport and associated services, rose the most on the non-food index.

A separate index for food, which accounts for the bulk of the inflation basket, showed a price increase of 15.18% from 15.04% in May. Food inflation has been in double digits for more than three years.

The rise in the food index was caused by increases in bread and cereals, potatoes, yam and meat, fish and vegetables.

Africa’s top oil exporter faces economic hardship from the coronavirus outbreak and sharp falls in crude prices, which have caused a steep decline in growth.

The government expects the economy to contract by as much as 8.9% this year.

Nigeria has more than 34,000 confirmed cases of coronavirus and 76 deaths. Most cases are in urban areas, where the brunt of price increases is felt, especially for imported drugs and food.

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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