Nigeria’s inflation rate hits 22.79% in June – NBS

The National Bureau of Statistics (NBS) says Nigeria’s headline inflation rate increased to 22.79 per cent in June 2023.

The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for June, which was released in Abuja on Monday.

According to the report, the figure is 0.38 per cent points higher compared to the 22.41 per cent recorded in May.

It said on a year-on-year basis, the headline inflation rate in June was 4.19 per cent higher than the rate recorded in June 2022 at 18.6 per cent.

“This shows that the headline inflation rate (year-on-year basis) increased in June 2023 when compared to the same period in May 2022.”

The report said the contributions of items on the divisional level to the increase in the headline index are food and non-alcoholic beverages at 11.81 per cent and housing, water, electricity, gas and other fuel at 3.81 per cent.

Others are clothing and footwear at 1.74 per cent; transport at 1.48 per cent; furnishings, household equipment and maintenance at 1.15 per cent and education at 0.9 per cent, and health at 0.68 per cent.

“Miscellaneous goods and services at 0.38 per cent; restaurant and hotels at 0.28 per cent; alcoholic beverage, tobacco and kola at 0.25 per cent; recreation and culture at 0.16 per cent, and communication at 0.15 per cent.”

It said the percentage change in the average CPI for the 12 months ending June over the average of the CPI for the previous 12 months period was 21.54 per cent.

“This indicates a 5.00 per cent increase compared to 16.54 per cent recorded in June 2022.”

The report said the food inflation rate in June was 25.25 per cent on a year-on-year basis, which was 4.65 per cent higher compared to the rate recorded in June 2022 at 20.6 per cent.

“The rise in food inflation is caused by increases in prices of oil and fats, bread and cereals, fish, potatoes, yams and other tubers, fruits, meat, vegetable, milk, cheese and eggs”.

It said on a month-on-month basis, the food inflation rate in June was 2.4 per cent, which was a 0.21 per cent rise compared to the rate recorded in May at 2.19 per cent.

The report said the “All items less farm produce” or core inflation, which excludes the prices of volatile agricultural produce stood at 20.27 per cent in June on a year-on-year basis.

“This increased by 4.53 per cent compared to 17.75 per cent recorded in June 2022.”

It said the highest increases were recorded in prices of passenger transport by air and road, gas, vehicles spare parts, liquid fuel, fuels and lubricants for personal transport equipment, medical services, etc.

The NBS said on a month-on-month basis, the core inflation rate was 1.74 per cent in June 2023.

“This indicates a 0.07 per cent drop compared to what was recorded in May 2023 at 1.81 per cent.”

“The average 12-month annual inflation rate was 18.71 per cent for the 12 months ending June 2023, this was 4.65 per cent points higher than the 14.06 per cent recorded in June 2022.”

The report said on a year-on-year basis in June, that the urban inflation rate was 24.33 per cent, which was 5.23 per cent higher compared to the 19.09 per cent recorded in June 2022.

“On a month-on-month basis, the urban inflation rate was 2.31 per cent in June representing a 0.21 per cent rise compared to May 2023 at 2.00 per cent.”

The report said on a year-on-year basis in June, the rural inflation rate was 21.37 per cent, which was 3.25 per cent higher compared to the 18.13 per cent recorded in June 2022.

“On a month-on-month basis, the rural inflation rate in June was 1.96 per cent, which increased by 0.16 per cent compared to May 2023 at 1.80 per cent.”

On states’ profile analysis, the report showed in June, all items inflation rate on a year-on-year basis was highest in Lagos at 25.75 per cent, followed by Ondo at 25.4 per cent, and Kogi at 25.23 per cent.

It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Borno at 20.4 per cent, followed by Zamfara at 20.93 per cent, and Ekiti at 21.06 per cent.

The report, however, said in June 2023, all items inflation rate on a month-on-month basis was highest in Ogun at 3.21 per cent, Plateau at 3.05 per cent, and Jigawa at three per cent.

“Zamfara at 1.40 per cent, followed by Delta at 1.42 per cent and Rivers at 1.54 per cent recorded the slowest rise in month-on-month inflation.”

The report said food inflation in June, on a year-on-year basis, was highest in Kwara at 30.8 per cent, followed by Lagos at 30.37 per cent, and Kogi at 29.71 per cent.

“Zamfara at 21.38 per cent, followed by Sokoto at 21.60 per cent and Borno at 21.75 per cent recorded the slowest rise in food inflation on a year-on-year basis.”

The report, however, said on a month-on-month basis, in June, food inflation was highest in Kwara at 3.82 per cent, followed by Abuja at 3.64 per cent and Ogun at 3.56 per cent.

“With Rivers at 0.75 per cent, followed by Zamfara at 1.33 per cent and Adamawa at 1.47 per cent recorded the slowest rise on month-on-month food inflation.”