Wednesday, 17 October 2018
Latest news
Main » Inflation drops for 16th consecutive month to 11.61%

Inflation drops for 16th consecutive month to 11.61%

14 June 2018

The CPI, which measures inflation rate in the economy within a period, showed inflation rate dropping further by about 0.87 per cent basis points from 12.48 per cent in April to about 11.61 per cent during the month. In rural areas, retail inflation stood at 4.72% in May, compared to 4.67% in April.

The committee which sets interest rates at the Bank of England will consider the latest inflation figures when it meets next month.

Based on Consumer Price Index (CPI), the retail inflation was at 4.58 per cent in the preceding month, April.

The ONS said petrol prices rose by 4.6p per litre between April and May 2018 to 125.3p - the highest since October 2014 - while diesel prices are 4.7p higher.

More news: Rebel Wilson defamation damages payout slashed almost $4m on appeal

This, it noted was down by 0.2 per cent from the rate recorded in April, which was 10.9 per cent.

It was thought that any increase in inflation could help tip the Bank more towards rate action by the Bank but sterling slipped 0.4% against the dollar to $1.33 - driven down again in recent weeks on lower rate expectations and continuing Brexit uncertainty.

However, the percentage change in the average composite CPI for the twelve-month period ending May, 2018 over the average of the CPI for the previous twelve-month period was 11.83%, which is a reduction of 0.19% from that of April. This rise in the index was caused by increases in prices of Potatoes, yam and other tubers, Vegetables, Fish, Bread and cereals, Fruits and Meat.

The spike in inflation also came on back of fuel prices after global oil prices hit a 3-1/2-year high last month, led by increasing worries of supply constraints from US President Donald Trump's decision to withdraw from the 2015 Iran nuclear agreement.

More news: LeBron James gets 'MVP' ovation in likely Cleveland farewell

In the same vein, the urban index rose by 1.10% in May 2018.

Air fares, which were influenced by the early timing of Easter this year, registered annual inflation of 8.2 per cent, having fallen by 7.9 per cent in the prior month.

On month-on-month basis, the core sub-index increased by 0.98 per cent in May 2018, up by 0.11 per cent when compared with 0.87 per cent recorded in April.

Meanwhile, during the month under review, Kebbi State recorded the highest all-items-inflation with a figure of 14.65%. Kogi followed with 9.07% while Delta recorded 9.22% on a year-on-year all item basis in May, 2018.

More news: Display fingerprint and 91% screen-to-body ratio