Nigeria’s Inflation Improves to 12 Month low in May

• Nigeria’s Inflation Improves to 12 Month Low in May

The cost of goods and services in Nigeria improved to a year low in May, following the implementation of the new foreign exchange policy by the Central Bank of Nigeria (CBN) in April.

The figure released by the National Bureau of Statistics on Thursday showed the consumer prices which measures inflation rate declined from 17.24 percent (year-on-year) recorded in April to 16.25 percent in May. The lowest since June 2016.

While on a month basis, the headline index surged 1.9 percent in May, a 0.28 percent higher than the 1.60 percent recorded in April. Suggesting persistence price pressure despite the general decline in year-on-year inflation.

Also, the percentage change in the average composite consumer price index for the 12-month period through May 2017 was 17.63 percent, up from 17.59 percent recorded in April 2017.

“This is a welcome development, especially with the economy gradually recovering and the foreign exchange market improving,” said Samed Olukoya, a foreign exchange research analyst at Investors King Ltd. “It will boost business confidence and economic activities going forward.”