Nigeria’s consumer inflation rate slowed for the third consecutive month to 17.75 percent in June from 17.93 percent, the National Bureau of Statistics (NBS) said on Friday.
In its latest Consumer Price Index (CPI) report, the bureau said that rising inflation rate slowed by 0.18 percent in June compared with the rate in May.
The decline in the rate if inflation for the month of June was attributed to the slow down in the food inflation for the period.
Food inflation slowed to 21.83 percent in June compared to 22.28 percent in May, implying that food prices continued to rise in the review period but at a slightly slower rate compared to the previous month.
Analysts had expected inflation to pick up after it dipped in May due to the impact of a devaluation in that month on imported goods and higher diesel costs on local production.
In May, the central bank devalued the naira by 7.7 percent on the official market and later said the currency was overvalued by up to 10 percent on the spot market based on its model. The naira has since weakened on the black market.
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The government has said inflation is a structural problem linked to infrastructural deficits and not solely a money supply issue, citing that most of it was also imported.
“Prices continued to rise in June 2021 but at a slightly slower rise than they did in May 2021,” the NBS said in a report.
The Bureau said on Friday core inflation – the price index less farm produce – dipped in June to 13.09 percent.
The central bank is due to meet in two weeks to set benchmark interest rates but with weak growth, few expect any alteration.
The central bank has been dovish since September by leaving rates on hold at 11.5 percent.
But inflation, which is currently above the central bank’s 6-9 percent target band, has pressured households, coupled with a shrinking labour market and mounting insecurity.
Nigeria’s economy grew 0.5 percent in the first quarter, after overcoming a recession the previous quarter.
