Inflation drops to 17.75% as food prices rise

The National Bureau of Statistics (NBS) has disclosed that inflation rate decreased by 0.18% in June 2021 to 17.75%.

The country had recorded an inflation rate of 17.93% in May 2021.

NBS said the percentage change in the average composite CPI for the twelve months period ending June 2021, over the average of the CPI for the previous twelve months period was 15.93 percent, representing a 0.43 percentage point increase over 15.50 percent recorded in May 2021.

In its report titled “Consumer Price Index (CPI)” the Bureau said: “The consumer price index, (CPI) which measures inflation (rate of change in the increase in prices) increased by 17.75 percent (year-on-year) in June 2021.

“This is 0.18 percentage points lower than the rate recorded in May 2021 (17.93) percent”.

According to NBS, this implies that prices continued to rise in June 2021 but at a slightly slower rise than it did in May 2021.

It noted the corresponding twelve-month year-on-year average percentage change for the urban index was 16.51 percent in June 2021.

This, it said, is higher than 16.09 percent reported in May 2021, while the corresponding rural inflation rate in June 2021 was 15.36 percent compared to 14.94 percent recorded in May 2021.

On month-on-month basis, the report said, the Headline index increased by 1.06 percent in June 2021.

It added that this is 0.05 percentage points higher than the rate recorded in May 2021 (1.01 percent).

On food, the Bureau said the “composite food index rose by 21.83 percent in June 2021 compared to 22.28 percent in May 2021.

“(This implies that food prices continued to rise in June 2021 but at a slightly slower speed than it did in May 2021.)

“The average annual rate of change of the Food sub-index for the twelve-month period ending June 2021over the previous twelve-month average was19.72 percent, 0.54 percent points from the average annual rate of change recorded in May 2021(19.18 percent).

“This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, Yam and other Tubers, Milk, Cheese and Eggs, Fish, Soft drinks,Vegetables, Oils and fats and Meat.

“On month-on-month basis, the food sub-index increased by1.11percent in June 2021, up by 0.06 percent points from1.05 percent recorded in May 2021.”

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