Nigeria Inflation Rate Hits 16.5% in June, Highest since 2005

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The National Bureau of Statistics has released the Consumer Price Index which measures inflation stating that the country inflation rate has risen from 15.6 per cent in May 2016 to 16.5 per cent in June 2016. The 16.5 per cent increase in inflation rate represents one of the highest increases to be recorded by the country in recent times.

Just like the month of May, 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 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.

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