Retail inflation inches up to 4.87% in May on costlier food items

ABUJA- The Consumer Price Index (CPI) which measures inflation released on Wednesday by the National Bureau of Statistics (NBS) increased by 11.61 percent (year-on-year) in May 2018.

The manufacturing sector, which constitute more than 77 per cent of the index, recorded a growth of 5.2 per cent in April, up from 2.9 per cent in the year ago month.

India's annual retail inflation accelerated to a four-month high in May, driven by higher fuel prices and a depreciating rupee, strengthening views that the central bank could raise interest rates again in August.

In its latest policy review earlier this month, the RBI raised the repo rate - at which it lends to banks - by 0.25 per cent to 6.25 per cent, the first hike in more than four years due to growing concerns about inflation stoked by rising global crude oil prices as well as domestic price increases.

The report stated that in May, inflation was highest in Kebbi (14.65 per cent), Yobe (13.68 per cent) and Jigawa (13.62 per cent).

Mike Hardie, head of inflation at the ONS said: "Recent large rises in the cost of crude oil have fed through to prices paid by consumers at the pump".

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Inflation rate reduces by 0.87% from April.

The rate of inflation was unchanged last month at 2.4% despite a surge in fuel costs, according to official figures. It increased 3.1 percent in May compared with a 2.8 percent rise in the previous month.

On month-on-month basis, the report noted that the urban index rose to 1.1 per cent in May from 0.85 per cent in April, while the rural index also rose to 1.08 per cent in May from the 0.82 per cent recorded in April.

Nigeria's annual inflation has dropped to 11.61% in May, below the federal government's projection of 12.42% set in the 2018-2020 Medium Term Expenditure Framework and Fiscal Strategy Paper. This was caused by the increase in price of potatoe, yam and other tubers, fish, bread and cereals, Oil and fats, vegetables, coffee, tea and cocoa, Meat, Milk, cheese and eggs.

It stated the percentage change in the average composite CPI for 12 months period ended May over the average of CPI for the previous 12 months period. This shows a reduction of 0.01% from 0.85% in April, on a month-on-month basis. Kogi followed with 9.07% while Delta recorded 9.22% on a year-on-year all item basis in May, 2018.

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