Findings indicate the inflation in Nigeria rate has hit a record high at 16.5%

According to the Consumer Price Index
(CPI), it states that inflation rate in Nigeria’s
economy has hit the roof at of 16.5%. It said
this is the highest figure since 2005.

President Muhammadu Buhari has been

applauded in his war against corruption and

decimating insurgency; he has however

performed below expectations to make the

lives of Nigerians better since May 20, 2015.

The finding was released by the National

Bureau of Statistics (NBS). It revealed that

inflation for the month of June rose to its

highest point since October, 2005. This is an

11 year gap. Likewise. inflation rate

increased from 15.6% in May to 16.5% in

June 2016. This is because energy and food

prices weigh in heavy on inflation for July.

“In June, the Consumer Price Index (CPI)

which measures inflation continued to record

relatively strong increases for the fifth

consecutive month. The Headline index

increased by 16.5% (year-on-year), 0.9%

points higher from rates recorded in May

(15.6%),” NBS said.

“Most COICOP divisions which contribute to

the headline index increased at a faster pace,

the increase was however weighed upon by a

slower increase in three divisions; Recreation

& Culture, Restaurant & Hotels, and

Miscellaneous Goods & Services Year on year,

energy prices, imported items and related

products continue to be persistent drivers of

the core sub-index.

“The Core index increased by 16.2% in June,

up by approximately 1.2% points from rates

recorded in May (15.1%). During the month,

the highest increases were seen in the

electricity, liquid Fuel (kerosene), furniture and

furnishings, passenger transport by road, fuels

and lubricants for personal transport

equipment.”

Apart farm produce, the main sub-index rose

by 16.2% in June (year-on-year) by

approximately by 1.2% points from 15.1%

recorded in May.

“The Core sub-index has increased at a faster

pace for five consecutive months. Over the

first six months of the year, the Core subindex

increased by 12.8%, up 5.2% points from rates

recorded in the corresponding period in

2015.”

Inflation rate has risen consistently since

October 2015, with the change in exchange

rate policy, in the latter part of June

expected to weigh in on inflation for the

month of July.

Goldman Sachs, an American multinational

banking and investment firm, forecasts that

Nigeria’s inflation will not rise above 20

percent in 2016, before it takes retreats to

lower levels.

While there is palpable fear in the air based

on the current staggering inflation rate by a

good number of Nigerians, Seyi Makinde, an

engineer turned politician revealed there is

still hope of a bright future for Nigeria,

despite the present economic crunch.