Food inflationary trend persists as Inflation eased to 16.25% in May – NBS
The National Bureau of Statistics, NBS, has reported that annual inflation rate dropped by 0.99 per cent to 16.25 per cent in May 2017 from 17.24 per cent recorded in April. This represents the fourth consecutive decline in the rate of inflation since January 2017. NBS, however, added that inflation increased month-on-month by 1.88 per cent, compared to 1.60 per cent in April, the highest monthly increase since May 2016. The sustained decline in annual headline inflation followed slower year-on-year increases in core inflation and food inflation to 13.0 per cent in May (from 14.8 per cent in April) and 19.27 per cent in May (from 19.30 per cent in April). The report shows that pressure points still exist despite the general slowdown in inflation on year-on-year terms, stemming from higher agro commodity prices as a result of higher global food prices, increasing exports. The NBS report showed that food inflation is largely responsible for the rising month-on-month inflation. Food inflation moderated only slightly to 19.27 per cent year-on-year (as against April, 19.30 per cent) and inched up significantly in month-on-month terms to 2.54 percent (April: 2.04 percent).