Rising inflation in Africa’s largest economy, Nigeria, moderated slightly in the month of June to 17.75 percent year-on-year, according to the latest report from the National Bureau of Statistics (NBS).
This represents a 0.18 percent decrease in the pace of price increase when compared to 17.93 percent recorded in May 2021. This means while prices are on the rise there are signs that underlying factors are gradually normalising or the federal government’s efforts at reining in escalating consumer prices are gradually crystalising.
On a monthly basis, inflation increased by 1.06 percent in June 2021, a 0.05 percent increase from 1.01 percent filed in May 2021.
The percentage change in the average composite CPI for the twelve months period ending June 2021, over the average of the CPI for the previous twelve months period was 15.93 percent, representing a 0.43 ercentage point increase over 15.50 percent recorded in May 2021.
Prices of goods and services continued to rise across all sectors in Nigeria in the month of June. This is largely due to the escalating increase in foreign exchange rates and the increase in duties imposed on imported goods. Nigeria imports over 90 percent of her consumption, therefore, change in Naira outlook impacts most sectors given the nation’s weak manufacturing sector.
The difference in import amount is passed on to consumers who are already impacted by the low economic activities, weak wage growth, 33.33 percent unemployment and drop in consumer spending.