Inflation Rate Now 17.93 Per Cent

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The National Bureau of Statistics (NBS) Tuesday said that
inflation rate in the month of May 2021 is now 17.93 per cent.

The Bureau said the figure reduced by 0.19 per cent from the
18.12 per cent recorded in April, 2021.

The NBS made this known in its Consumer Price Index (CPI) report
of May 2021.

It added that on month-on-month basis, the headline index rose
by 1.01 per cent in May 2021.

According to the report; “On month-on-month basis, the Headline
index increased by 1.01 percent in May 2021.

“This is 0.04 percentage points higher than the rate recorded in
April 2021 (0.97 percent).

“The consumer price index, (CPI) which measures inflation
increased by 17.93 percent (year-on-year) in May 2021. This is 0.19
percent points lower than the rate recorded in April 2021 (18.12
percent).”

NBS said increases were recorded in all Classification of
Individual Consumption by Purpose (COICOP) divisions that yielded
the Headline index.

The urban inflation rate, according to the bureau, increased by
18.51 percent (year-on-year) in May 2021 from 18.68 percent
recorded in April 2021, while the rural inflation rate increased by
17.36 percent in May 2021 from 17.57 percent in April 2021.

On a month-on-month basis, NBS noted that the urban index rose
by 1.04 percent in May 2021, up by 0.05 percentage points compared
to the rate recorded in April 2021 (0.99), while the rural index
rose by 0.98 percent in May 2021, up by 0.03 points compared to the
rate that was recorded in April 2021 (0.95 percent).

It explained that the percentage change in the average composite
CPI for the twelve months period ending May 2021 over the average
of the CPI for the previous twelve months period was 15.50 percent,
showing a 0.46 percent point rise from 15.04 percent recorded in
April 2021.

NBS said the corresponding twelve-month year-on-year average
percentage change for the urban index is 16.09 percent in May 2021.
This is higher than 15.63 percent reported in April 2021, while the
corresponding rural inflation rate in May 2021 is 14.94 percent
compared to 14.48 percent recorded in April 2021.

In terms of All Item Index, the report said the composite food
index rose by 22.28 percent in May 2021 compared to 22.72 percent
in April 2021.

It added that the average annual rate of change of the Food
sub-index for the twelve-month period ending May 2021 over the
previous twelve-month average was 19.18 percent, 0.60 percent
points from the average annual rate of change recorded in April
2021(18.58) percent.

The NBS said “on month-on-month basis, the food sub-index
increased by 1.05 percent in May 2021, up by 0.06 percent points
from 0.99 percent recorded in April 2021.

“This rise in the food index was caused by increases in prices
of Bread, Cereals, Milk, Cheese, Eggs, Fish, Soft drinks, Coffee,
Tea and Cocoa, Fruits, Meat, Oils and fats and Vegetables.

“The ”All items less farm produce” or Core inflation, which
excludes the prices of volatile agricultural produce stood at 13.15
percent in May 2021, up by 0.41 percent when compared with 12.74
percent recorded in April 2021.

“On month-on-month basis, the core sub-index increased by 1.24
percent in May 2021. This was up by 0.25 percent when compared with
0.99 percent recorded in April 2021.

“The highest increases were recorded in prices of Pharmaceutical
products, Garments, Shoes and other footwear, Hairdressing salons
and personal grooming establishments, Furniture and furnishing,
Carpet and other floor covering, Motor cars, Hospital services,
Fuels and lubricants for personal transport equipment, Cleaning,
repair and hire of clothing, Other services in respect of personal
and transport equipment, Gas, Household textile and Non-durable
household goods.

“The average 12-month annual rate of change of the index was
11.50 percent for the twelve-month period ending May 2021; this is
0.25 percent points higher than 11.25 percent recorded in April
2021.”