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Inflation rises in Nigeria for 10th straight month with highest points in over 2 years

The National Bureau of Statistics (NBS) has announced that the consumer price index (CPI) increased by 12.56% (year-on-year) in June 2020.

The increase is 0.16% higher than the 12.40% recorded in May 2020, according to an NBS report published on Friday, July 17.

On a month-on-month basis, the headline index increased by 1.21% in June, 0.04% higher than the 1.17% recorded in May.

The urban index rose by 1.23%, on a month-on-month basis, while the rural index rose by 1.19%.

The composite food index rose by 15.18% in June 2020, with the highest, on a month-on-month basis, recorded in Kogi, Benue, and Zamfara.

Ondo, Anambra, and Lagos recorded the slowest rise in the price of food items on a month-on-month basis, according to the NBS report.

"This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, fruits, oils and fats, meat, fish and vegetables," the report read.

On a year-on-year basis, the inflation for non-agricultural produce rose only slightly from 10.12% in May to 10.13% in June, but dropped slightly by 0.02% to 0.86% in June on a month-on-month basis.

The highest increases were recorded in prices of medical services, hospital services, passenger transport by road, pharmaceutical products, motor cars, paramedical services, maintenance and repair of personal transport equipment, bicycles, motor cycles, vehicle spare parts and other services in respect of personal transport equipment.

The CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living.

10,534 respondents spread across the country usually provide price data for regularly priced market items of 740 goods and services.

June's inflation point is the highest in over two years since 13.34% was recorded in March 2018.

The current upward trend in inflation started in September 2019 around the time President Muhammadu Buhari closed Nigeria's land borders allegedly because of the activity of smugglers.

The outbreak of the coronavirus disease (COVID-19) that has interrupted economic activities all over the world is also believed to have also played a part.

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