Despite skyrocketing prices of commodities across the country, majorly occasioned by rising insecurity especially in farming communities, which has forced many farmers to abandon framing, Nigeria’s bureau of statistics says inflation rate fell to 17.75 per cent in the month of June.
That is 0.18 percentage points lower than the rate recorded in May 2021 (17.93) percent.
The Monetary Policy Committee of the Central Bank of Nigeria (CBN) at its last meeting blamed insecurity for the surging inflation in the country.
The committee raised concern over the worsening security situation in many parts of the country, particularly, the food producing areas, where farmers face frequent attacks by herdsmen and bandits in their farms. The violent attacks have been on the rise since then.
Over 2,700 lives were lost to violence in Nigeria in the last three months of this year according to a report by Nigerian research group SBM Intelligence. The report said 2,732 people were killed in 33 states and the Federal Capital Territory, Abuja between April and June.
According to data released by the National Bureau of Statistics (NBS) yesterday, increases were recorded in all COICOP divisions that yielded the headline index.
On month-on-month basis, the headline index increased by 1.06 per cent in June 2021. This is 0.05 percentage points higher than the rate recorded in May 2021 (1.01 per cent).
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 per cent, representing a 0.43 percentage points increase over 15.50 per cent recorded in May 2021.
Insecurity that has affected food supply from rural (farming) areas to the cities, making urban inflation rate to increase by 18.35 per cent (year-on-year) in June 2021 from 18.51 per cent recorded in May 2021.
Rural inflation rate also increased by 17.16 per cent in June 2021 from 17.36 per cent in May 2021. Many of the farming communities in the country have been deserted for refugee camps, while other farmers moved to cities like Lagos, Abuja and other state capitals.
On a month-on-month basis, the urban index rose by 1.09 per cent in June 2021, up by 0.05 points compared to the rate recorded in May 2021 (1.04 per cent), while the rural index also rose by 1.02 per cent in June 2021, up by 0.04 percentage points over the rate that was recorded in May 2021 (0.98) per cent.
The corresponding 12 year-on-year average percentage change for the urban index was 16.51 per cent in June 2021. This is higher than 16.09 per cent reported in May 2021, while the corresponding rural inflation rate in June 2021 was 15.36 per cent compared to 14.94 per cent recorded in May 2021.