Nigeria’s yearly inflation rate has dropped to 11.61 per cent in May.
This is the 16th straight month of steady decline in inflation. The latest slump is below Federal Government’s projection of 12.42 per cent set in the 2018-2020 Medium Term Expenditure Framework and Fiscal Strategy Paper.
Food inflation declined to 13.45 per cent from 14.80 per cent in April.
According to the Consumer Price Index for May 2018 released yesterday, the highest increases were recorded in yam, potatoes, tubers, vegetables, fish, bread, fruits and cereals.
“On a month-on-month basis, the headline index increased by 1.09 per cent in May 2018, up by 0.26 per cent points from the rate recorded in April 2018,” the report showed.
In May, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) retained interest rates. While reading the decision of the committee, CBN Governor Godwin Emefiele, 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.
“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,” he said.