Nigeria: Inflation drops in June but remains elevated
July 17, 2017
In June, consumer prices rose 1.58% month-on-month, down marginally from May’s 1.88% rise. June’s uptick was broad-based, with prices rising for food and non-alcoholic beverages, clothing and footwear and housing, water, electricity, gas and other fuel, amongst other categories.
Inflation fell from 16.3% in May to 16.1% in June, marking the fifth consecutive monthly slowdown. However, inflation is still far above the Central Bank’s 6.0%-9.0% target range, where it has been since surging from the middle of last year as a result of electricity and fuel price hikes and a weak naira. Core consumer prices, which exclude the prices of volatile agricultural produce, rose 1.5% in June (May: +1.1% month-on-month). Lastly, core inflation fell from 13.0% in May to 12.0% in June.
Author: Oliver Reynolds, Economist