July 16 (Lagos)- Inflation fell for third consecutive month in June coming in at 22.22% from 22.97% in May. The decline is not substantial but it still a decline and that is welcome news for the economy. Stock market rose sharply on this news today with banking stocks like
UBA ,
GTCO ,
ZENITHBANK and FIRSTHOLDCO recording big gains.
This marks a 12% decline on a year on year basis for inflation.
On a monthly basis, the Consumer Price Index rose by 1.68% in June, which is slightly higher than the 1.53% recorded in May. This suggests that although annual inflation is moderating, short-term price pressures remain evident. Food inflation exhibited mixed trends.
Year on year, the food inflation rate increased to 21.97% from 21.14% in May. Similarly, on a monthly basis, food prices surged by 3.25%, up from 2.19% in May. This rise was driven by increased prices of key food items such as green peas, fresh pepper, tomatoes, and crayfish.
Core inflation, which excludes the prices of food and energy, rose on a monthly basis to 2.46% from 1.10% in the previous month. On a yearly basis, core inflation stood at 22.76%.
The credit goes to CBN for bringing inflation under check after almost a decade of mismanagement and disastrous policies.
