FSDH Forecasts Drop in June Inflation Rate to 15.64%

As the National Bureau of Statistics (NBS) prepares to release Nigeria’s inflation rate for June 2017, FSDH Research, the research arm of FSDH Merchant Bank has projected a lower inflation rate of 15.64 per cent for the month of June compared to 16.25 per cent recorded in May.

“We estimate that the increase in the CCPI in June 2017 would produce an inflation rate of 15.64 per cent lower than the 16.25 per cent recorded in May 2017,” FSDH said in its report.

If this happens, it would mark the fifth consecutive decline in inflation rate since February 2017.
The organisation stated that its model indicated that the general price movements in the consumer goods and services in June 2017 would increase the Composite Consumer Price Index (CCPI) to 233.25 points, representing a month-on-month increase of 1.18 per cent.

“Our model indicates that the general price movements in the consumer goods and services in June 2017 would increase the Composite Consumer Price Index (CCPI) to 233.25 points, representing a month-on-month increase of 1.18%.

“We estimate that the increase in the CCPI in June 2017 would produce an inflation rate of 15.64 per cent lower than the 16.25 per cent recorded in May 2017,” it noted, adding that the increase in the price of food items moderated in the month of June when juxtaposed with the month of May 2017.

“We also observed increases in some divisions that contribute to the Core Sub-Index, with the highest price observed in the clothing and footwear divisions.

“The monthly Food Price Index (FPI) that the Food and Agriculture Organization (FAO) released today shows that the Index advanced further in June 2017. The Index averaged 175.2 points, 1.43% higher than the revised value for May 2017, and 6.89% higher than the June 2016 figure.

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