The Consumer Price Index (CPI) which measures inflation increased by 11.61 percent (year-on-year) in May 2018. This is 0.87 percent points less than the rate recorded in April 2018 (12.48) percent and represents the sixteenth consecutive disinflation since January 2017.
Increases were recorded in all COICOP divisions that yield the Headline Index.
On a month-on-month basis, the Headline index increased by 1.09 percent in May 2018, up by 0.26 percent points from the rate recorded in April 2018.
The percentage change in the average composite CPI for the twelve months period ending May 2018 over the average the average of the CPI for the previous twelve months period was 14.79 percent, showing 0.41 percent point lower from 15.20 percent recorded in April 2018.
The urban inflation rate eased by 12.08 percent (year-on-year) in May 2018 from 12.89 percent recorded in April, while the rural inflation rate also eased 11.20 percent in May from 12.13 percent in April.
On month-on-month basis, the urban index rose by 1.10 percent in May 2018, up by 0.25from 0.85 percent recorded April, while the rural index also rose by 1.08 percent in May 2018, up by 0.26 percent from the rate recorded in April (0.82) percent.
The corresponding twelve-month year-on-year average percentage change for the urban index is 15.10 percent in May 2018. This is less than 15.47 percent reported in April, while the corresponding rural inflation rate in May 2018 is 14.53 percent compared to 14.95 percent recorded in April.
The composite food index rose by 13.45 percent in May 2018. This rise in the index was caused by increases in prices of Potatoes, yam and other tubers, Vegetables, Fish, Bread and cereals, Fruits and Meat.
On month-on-month basis, the food sub-index increased by 1.33 percent in May 2018, up by 0.42 percent points from 0.91 percent recorded in April.
The average annual rate of change of the Food sub-index for the twelve-month period ending May 2018 over the previous twelve-month average was 18.36 percent, 0.53 percent points from the average annual rate of change recorded in April (18.89) percent.
All Items Less Farm Produce
The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.7 percent in May 2018, down by 0.2 percent from the rate recorded in April (10.9) percent.
On month-on-month basis, the core sub-index increased by 0.98 percent in May 2018. This was up by 0.11 percent when compared with 0.87 percent recorded in April.
The highest increases were recorded in prices of Hairdressing saloons and personal grooming establishment, Vehicle spare parts, Fuels and lubricants for transport equipment, Books and stationaries, Domestic services and household services, Pharmaceutical products, Paramedical services, Medical services and passenger transport by road.
The average 12-month annual rate of change of the index was 11.83 percent for the twelve-month period ending May 2018; this is 0.19 percent points lower than 12.02 percent recorded in April.
In analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.
All Items Inflation
In May 2018, all items inflation on year on year basis was highest in Kebbi (14.65%), Yobe (13.68%) Jigawa (13.62%), while Kwara (8.87%), Kogi (9.07%) and Delta (9.22%) recorded the slowest rise in headline Year on Year inflation.
On month on month basis however, May 2018 all items inflation was highest in Adamawa (1.98%), Kwara (1.79), and Kaduna (1.70%), while Kogi (0.02%), Lagos and Ogun (0.52%) and Cross River (0.56%) recorded slowest rise on a month on month all item basis in May 2018.
In May 2018, food inflation on a year on year basis was highest in Yobe (15.86%), Kebbi (15.62%) and Jigawa (15.56%), while Kogi (8.54%), Benue (9.93%) and Akwa Ibom (11.13%) recorded the slowest rise in food inflation.
On month on month basis however, May 2018 food inflation was highest in Taraba (2.80%), Adamawa (2.38%) and Enugu (2.36%), while Kogi, Oyo and Ekiti all recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in May 2018.