At 12.48 percent, Nigeria’s inflation, in April 2018, recorded the lowest rate in 26 months as both food and core items equally trended downwards.
The inflation number, according to the National Bureau of Statistics (NBS) was 0.86 percent points less than the rate recorded in March at 13.34 percent and represents the fifteenth consecutive disinflation since January 2017.
Ahead of the release of the numbers on Tuesday morning, analysts had projected that April inflation would trend below 13 percent, reflecting moderation in food prices and continued stability of the Naira.
They say the consecutive improvement in inflation pressures would obviously provide some comfort for governor Godwin Emefiele and his Central Bank team who see inflation easing to single digit in 2018 or lower double digits, at worst.
Food inflation, at 14.8 percent also recorded the lowest in 24 months and the fifth consecutive deceleration.
The NBS said the food index was pushed up in April by increases in prices of potatoes, potatoes, yam and other tubers, fish, bread and cereals, oil and fats, vegetables, coffee, tea and cocoa, meat, milk, cheese and eggs.
On a month-on-month basis, the Food sub-index increased by 0.91 percent in April 2018, up by 0.01 percent points from 0.90 percent recorded in March.
‘The average annual rate of change of the food sub-index for the twelve-month period ending April 2018 over the previous twelve-month average was 18.89 percent, 0.4 percent points from the average annual rate of change recorded in March (19.29) percent,” NBS said in the mailed report.
Core inflation also decelerated to 10.9 percent in April 2018, and is also the lowest in 27 months, but fourth consecutive decline.
Core inflation showed 0.3 percent points decline from the rate recorded in March at 11.2 percent.
On a month-on-month basis, the core sub-index increased by 0.87 percent in April 2018, this was up by 0.03 percent when compared with 0.84 percent recorded in March.
Speaking in April in Washington, Emefiele had expressed excitement that inflation concerns were gradually ebbing at the back of the apex bank’s monetary policy stance, and signaled the regulator could begin monetary easing soon, as commodity price continue to improve.
“At this time, yes, we are still in the mode of tightening…but I can assure all of us that we will not tighten perpetually, that at some point, we will begin to loosen and I believe that those financial accommodation period are coming on very, very soon,” Emefiele stated.
Meanwhile, the NBS inflation recorded the highest in Kebbi at 15.94%, Rivers 15.01% and Yobe 14.93%, while Kwara 9.77%, Delta 10.46% and Benue (11.19%) recorded the slowest rise in headline Year on Year inflation.
On a month on month basis however, April 2018 all items inflation was highest in Kebbi (1.73%), Rivers (1.72%) and Lagos (1.60%), while Bauchi (0.01%) recorded slowest rise and Kaduna and Kano recorded price deflation on a month on month all item basis in April 2018.
The Bureau also noted that Food InflationIn April 2018, food inflation on a year on year basis was highest in Kebbi (17.92%), Bayelsa (17.85%) and Nasarawa (17.71%), while Benue (10.95%), Kogi (12.27%) and Gombe (12.46%) recorded the slowest rise in food inflation.
On a month on month basis however, April 2018 food inflation was highest in Lagos (2.49%), Ekiti and Kebbi (2.0%) and Rivers (1.98%), while Benue, Borno, Kaduna, Kano and Nasarawa all recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in April 2018.
