BUSINESS AND ECONOMY|TROUBLE! Nigeria's inflation rate hits 15.6%

• Nigeria’s inflation rate has hit an 80-month high of 15.6% 

• The last time Nigeria recorded an inflation rate as high as 15.6% was in September 2009 when the rate of inflation was put at 15.86 %

Yemi Kale, Statistician general of the federation

According to a report released by the National Bureau of Statistics, inflation rose in the country due to the deregulation of the downstream sector of the oil industry which saw an increase in the price of Premium Motor Spirit from N87 to N145 per litre.

The NBS said the increase in inflation rate in May when compared to what was recorded in April is an indication of an overall rise in general price level across the economy as all divisions which contributed to the Headline index growing at a faster pace.

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The report reads in part. “In May, the Consumer Price Index which measures inflation recorded a relatively strong increase for the fourth consecutive month.

“The Headline index increased by 15.6 per cent year-on-year, 1.9 per cent points higher from rates recorded in April 13.7 per cent.

“Year on year, electricity  rates as well as other energy prices continue to manifest as key drivers of the core component of the CPI.

“During the month, the highest increases were seen in the passenger transport by road, liquid fuel (Kerosene), fuel and lubricants for personal transport equipment (premium motor spirit) and vehicle spare parts groups.

“Imported inflation rose by 18.6% in May 2016 from 16.3% in April 2016

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“Core Inflation year on year rose by 15.1% in May 2016 from 13.4% in April 2016 and month on month by 2.7% in May from 1.7% in April

“Food inflation, year on year, rose by 14.9% in May from 13.2% in April and month on month by 2.6% in May from 1.3% in April.”

The last time Nigeria recorded an inflation rate as high as the 15.6 per cent recorded in May this year was in September 2009 when the rate of inflation was put at 15.86 per cent by the NBS.

Meanwhile, Nigerians are in for hard time as the country’s apex bank, Central Bank of Nigeria (CBN) has been told to limit across-the-counter withdrawals to N10,000, following a major drop in customers’ deposit.

The call, made by Bankers Committee was due to with the industry recording a decline of about N1.03tn in total deposit.


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