Inflation Increases To 9.2 per cent Due To Fuel Scarcity

The irregular supply of Premium Motor Spirit (PMS) in Nigeria has caused Nigeria’s inflation rate to increase from nine per cent in May to 9.2 per cent in June, the National Bureau of Statistics has said.

Nigerians queuing to buy fuel

 “In June, the CPI, which measures inflation, rose to 9.2 per cent (year-on-year), 0.2 percentage points from the 9.0 per cent rate recorded in May.

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“The faster pace of the Headline Index was as a result of bottlenecks observed during the period, which resulted in major COICOP Divisions such as food and non-alcoholic beverages and transportation increasing at a faster pace during the period.

“Through the first six months of the year, the Headline Index has increased by 8.6 per cent, 0.7 percentage points higher from rates recorded during the corresponding period in 2014.

“Irregularity of the supply of Premium Motor Spirit continues to impact food prices. The Food Sub- Index rose to 10.0 per cent (year-on- year) in June, up by 0.2 percentage points from 9.8 per cent in May” the report said.

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The NBS added that late rains and late harvest had also contributed to the increase in food prices as vegetables  had become less available as precipitation begins, which increases the upward pressure on the food sub- index.

The report, which was made available to Punch stated that through the first six months of the year, the inflation index increased by 8.6 per cent from rates recorded during the corresponding period in 2014.

It said the faster pace of inflation was as a result of bottlenecks observed during the period, which resulted in major divisions such as food and non-alcoholic beverages and transportation.

Meanwhile, President Muhammadu Buhari has said he is yet to take a decision on the removal of fuel subsidy.

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