The inflation report released by the National Bureau of Statistics showed a 12.40 per cent rise in annual inflation rate for the month of May, higher than 12.34 per cent reported in April.
The increase in inflation rate was partly due to a rise in imported food index by 16.26 per cent against 16.24 per cent in April – against the backdrop of further depreciation of the Naira against the United State Dollar.
Specifically, two months moving average foreign exchange rates at the Bureau de Change and the parallel markets rose as Naira depreciated year on year by 18.74 per cent and 21.51 per cent to N425.17 to a dollar and N437.91 to a dollar respectively in May 2020. Core inflation rate also jumped to a double-digit, 10.12 percent from 9.98 per cent in April partly on higher transportation cost climbed by 10.09 per cent from a 9.78 per cent rise.
In the same vein, price of clothing & footwear rose by 10.39 per cent compared to a 10.33 per cent increase in the preceding month. Meanwhile, food inflation rate went up to 15.04 per cent against 15.03 per cent reported in the month of April).
On a monthly basis, annual inflation rate rocketed to 1.17 per cent in May from 1.02 per cent in April, as imported food inflation and food inflation indices rose by 1.27 percent and 1.43 per cent respectively.
Nevertheless, despite the rising transport inflation rate which jumped by 1.03 per cent, core inflation indices rose at a lower pace, by 0.88 percent down from 0.93 percent recorded in April.
Meanwhile, urban inflation rate increased by 13.03 per cent year on year in May from 13.01 per cent reported the preceding month while rural inflation rates up by 11.83 per cent compared with 11.73 per cent recorded in the preceding month.
Experts with Cowry Assets Management Limited expected that the general price level in the coming months to further
increase amid current planting season and in view of the planned
an increase in electricity tariff kicks off later in the year.
