The National Bureau of Statistics (NBS) on Thursday show that inflation has dropped to 16.25%, making it 1.25 points away from the 15% goal of the Economic Recovery and Growth Plan (ERGP).
According to the NBS report, inflation dropped from 17.24% in April to 16.25% in May.
In May, the highest increases were recorded in food, solid and liquid fuels, clothing, fish and wines.
“The Consumer Price Index (CPI) which measures inflation increased by 16.25% (year-on-year) in May 2017. This was 0.99% points lower the rate recorded in April (17.24%). Accordingly, this represents the fourth consecutive decline in the rate of inflation since January 2017,” the report said.
“On a month-on-month basis, the headline index increased by 1.88% in May 2017, 0.28% points higher than the rate of 1.60% recorded in April 2017 indicating the existence of persistence pressure on prices despite the general decline in year on year inflation. Month on Month inflation has cumulatively risen by 7.7% since January 2017.
“The food index increased by 19.27% (year-on-year) in May 2017, down by 0.03% points from the rate recorded in April (19.30%) indicating continued pressure on food prices.
“Price movements recorded by All Items less farm produce or Core sub-index rose by 13.00& (year-on-year) in May, down by 1.80% points from rate recorded in April (14.80%). This represents the 7th straight month of decline in the core index since November 2016.”
The ERGP, which was launched by the administration of President Muhammadu Buhari, aims to reduce the inflation rate to about 15% before the end of 2017.