Local Economic Updates
According to the Consumer Price Index (CPI) Report released by the National Bureau of Statistics (NBS) last week for the month of May 2021, the inflation rate declined the second consecutive month to 17.93%, 0.19% less than the Inflation Rate recorded in April (18.12%) on a y/y basis.
The CPI is typically categorised into two major sub-indices, the Food Index and the Core (Non-food) Index. While the Food Index declined from 22.72% (April 2021) y/y to 22.28% (May 2021) y/y, the Core Index on the other hand, also known as “All items less farm produce” increased to 13.15% y/y for May 2021, up by 0.14% against 12.74% y/y recorded in April 2021.
However, on month-on-month (m/m) basis, the headline inflation increased by 1.01%, faster than 0.97% recorded in April 2021. Similar trend was noticed in the core and food indices as both rose by 1.24%m/m and 1.05% m/m respectively, from 0.99% each last month.
While the downward trend of the Inflation rate contained in the NBS report is welcomed by many, most Nigerians do not believe it reflects the ongoing realities of market prices.