The National Bureau of Statistics on Monday released the Consumer Price Index which measures inflation stating that the country’s inflation rate has risen from 15.6 per cent in May to 16.5 per cent in June.
The 16.5 per cent increase in inflation rate represents one of the highest increases to be recorded by the country in recent times.
The bureau attributed the rise in inflation to increase in prices of electricity, kerosene, furniture and furnishing materials, passenger transport by road, fuel and lubricants as well as transport equipment.
The inflation rate had been experiencing an upward swing within the last seven months, a development which analysts have described as worrisome.
The implication of the resurgence in inflation according to analysts is that consumers may experience more tougher times ahead owing to reduction in their purchasing power.
The NBS said, “In June, the Consumer Price Index which measures inflation continued to record relatively strong increases for the fifth consecutive month.
“The Headline index increased by 16.5 per cent (year-on-year), 0.9 percentage points higher from rates recorded in May (15.6 per cent).
“During the month, the highest increases were seen in the electricity, liquid if fuel (kerosene), furniture and furnishings, fuel and lubricants.”
The report said while imported foods continue to increase at a faster pace, the food sub index on the aggregate increased at a slower pace in June relative to May.
The food index it added increased by 15.3 per cent (year on year) in June up by 0.4 percentage points from rates recorded in May.
“The index was weighted upon by a slower increase in the Vegetables and ‘Sugar, jam, honey, chocolate and confectionery’ group,” it added.
The NBS in the report explained that both the urban and rural indices increased at a faster pace in June.
For instance, it said the index rose by 100 basis points from 17.1 per cent in May to 18.1 per cent in June, while the rural index increased by 0.7 per cent points from 14.3 per cent in May to 15.1 per cent in June.
Commenting on the latest inflation statistics by NBS, the Executive Director, Corporate Finance, BGL Capital Ltd,Mr. Femi Ademola, said the country’s inflation is induced by lack of infrastructure.
He called on the federal ministry of finance and the economic management team to come up with workable fiscal policies that would help address the infrastructure challenge facing the country.
He said any attempt by the Central Bank of Nigeria to fight inflation would mean increasing the Monetary Policy Rate which would lead to a rise in lending rate.