Fuel price hike pushes inflation rate to 15.6%

The deregulation of the downstream sector of the oil industry which resulted into an increase in the price of Premium Motor Spirit from N87 to N145 per litre has pushed the country’s inflation rate to an 80-month high of 15.6 per cent.

The National Bureau of Statistics in the Consumer Price Index report which was released on Tuesday explained that the rate of inflation rose by 1.9 percentage points from 13.7 per cent in April to 15.6 per cent in May.

The last time Nigeria recorded an inflation rate as high as the 15.6 per cent recorded in May this year was in September 2009 when the rate of inflation was put at 15.86 per cent by the NBS.

Since then, the country had been experiencing a downward trend in the rate of inflation before a sudden resurgence within the last five months.

The NBS said the increase in inflation rate in May when compared to what was recorded in April is an indication of an overall rise in general price level across the economy as all divisions which contributed to the Headline index growing at a faster pace

For instance, the NBS report said during the month of May, the highest increases were seen in road transport, kerosene, fuels and lubricants and vehicle spare parts.