Nigeria inflation figure for June dropped to 17.75 per cent as analysts expect subsequent reduction in prices of food.
The drop in inflation rate from 17.93 per cent recorded in May, amid an accelerating increase in food prices is already impacting on government securities.
Likewise, yields in the Nigerian Treasury Bills (“NT-Bills”) market have sustained an upward trajectory over the past few weeks.
Investors can now get yields as high as 7.66 per cent for 330 days, higher than around six per cent paid previously.
Afrinvest West Africa Limited urged investors to take advantage of the low-risk in T-Bills, as they are issued by the Federal Government of Nigeria, tax-free and high liquidity nature of the instrument to make investment. “Go ahead and take advantage of investment opportunities in the NT-Bills market,” Afrinvest said.
The NBS said that the prices of goods and services, measured by the Consumer Price Index (CPI) increased by 17.75 per cent in June 2021 when compared to May 2021.
This is 0.18 percentage points lower than the rate obtained a month earlier.
“This implies that prices continued to rise in June 2021 but at a slightly slower rise than it did in May 2021,” NBS said.
On a month-on-month basis, the headline index increased by 1.06 per cent in June 2021. This is 0.05 percentage points higher than the rate recorded in May 2021 (1.01 per cent).
It said the composite food index rose by 21.83 per cent in June 2021 compared to 22.28 per cent in May 2021.
This implies that food prices continued to rise in June 2021 but at a slightly slower speed than it did in May 2021.
According to the NBS, this rise in the food index in June was caused by increases in the prices of bread and cereals, potatoes, yam and other tubers, milk, cheese and eggs, fish, soft drinks, vegetables, oils and fats and meat.
It added that month-on-month basis, the food sub-index increased by 1.11 per cent in June 2021, up by 0.06 per cent points from 1.05 per cent recorded in May 2021.