Nigeria’s annual inflation has dropped to 11.61% in May, below the federal government’s projection of 12.42% set in the 2018-2020 Medium Term Expenditure Framework and Fiscal Strategy Paper.
This is the 16th straight month of decline in inflation. Food inflation declined to 13.45% from 14.80% in April.
According to the Consumer Price Index for May 2018 released on Wednesday, the highest increases were recorded in yam, potatoes, tubers, vegetables, fish, bread, fruits and cereals.
“The Consumer Price Index (CPI) which measures inflation increased by 11.61% (year-on-year) in May 2018. This is 0.87% points less than the rate recorded in April 2018 13.34% and represents the sixteenth consecutive disinflation since January 2017,” the report read.
“On a month-on-month basis, the headline index increased by 1.09% in May 2018, up by 0.26% points from the rate recorded in April 2018.”
In May, the monetary policy committee of the Central Bank of Nigeria retained interest rates. While reading the decision of the committee, Godwin Emefiele, the CBN governor, said the rates were held because inflation is still above the committee's single-digit target.
“Despite the drop in inflation, the current inflation rate is still above the targeted single digit. The objective of the policy stance, therefore, would be to accelerate the reduction of inflation to single digit to promote economic stability,” he said.
“There is need to see how all the components of the gross domestic product would evolve in the second quarter of 2018 in order to gain greater clarity on the direction of monetary policy.”