Core consumer prices fell from a year earlier in April, recording the first decline in 40 months, government data showed Friday. The inflation rate was the lowest since January, when it was 1.4 percent.
"Increases were recorded in all COICOP (Classification of Individual Consumption by Purpose) divisions that yielded the headline index", the latest NBS report stated.
The reading compared with a year-over-year increase of 0.9 per cent in March, when the pandemic first started to affect the broader economy.
UK inflation drops to lowest since 2016 as virus hits
The drop is good news for savers with 376 deals now beating inflation compared to 65 last month when the CPI was 1.5 per cent, according to Moneyfacts, the analysts. Similarly, the rural inflation rate increased by 11.73 percent in April, up from 11.64 percent in March.
Household cleaning products increased on a monthly basis by 4.6 per cent, while toilet paper fuelled an increase in the "paper supplies" category by six per cent, the largest monthly increase for that index on record.
In April 2020, inflation of all items was highest in Bauchi (14.44%), Sokoto (13.99%) and Plateau (13.68%), while Edo (10.87%), Abuja (10.81%) and Kwara (8.98%) recorded the slowest rise in inflation.More news: Boris Johnson Will Not Face Criminal Investigation Over Relationship With Jennifer Acuri
United Kingdom consumer prices fell by 0.2% in April alone.
The Central Bank of Nigeria Governor, Godwin Emefiele, had said the rise in inflation in the last six months was due to structural factors. This should be expected in view of the border closure and increased demand for food on the back of COVID-19 lockdowns.
Melissa Davies, chief economist at Redburn, said: "As we move from the lockdown weighing on pricing to generally weak demand and higher unemployment, downward pressure on inflation is likely to persist".More news: Federal government releases guidelines on nursing home visitation
The federal government had on May 2, 2020, directed the release of about 17,500 metric tonnes of assorted grains from the Yola National Food Reserve site for distribution as palliatives to Nigerians. There's a good reason a little inflation is good for the economy.
National President of the Federation of Agricultural Commodity Association (FACAN), Dr. Victor Iyama, told The Guardian that agro exporters were badly affected, warning that lack of foreign exchange could worsen the situation.More news: Canadians asked to wear non-medical face masks to protect others