Nigeria’s Inflation Rate Hits Eight Months High, Now 16.82% In April
The consumer price index, (CPI) which measures Nigeria’s inflation rate increased to 16.82 per cent In April 2022- the highest in the last eight months and 0.02 short of the prediction of the Central Bank of Nigeria for May..
The Central Bank of Nigeria (CBN) had earlier projected that Nigeria’s inflation rate may hit 16.84 per cent in May 2022.
In his statement at the last Central Bank of Nigeria (CBN) Monetary Policy Committee meeting, Adenikinju Adeola Festus a member of the committee said the upsurge in the inflation rate was supply-driven.
According to him, if not properly addressed, it “will compromise long-term investment and economic growth.”
“The Federal Ministry of Finance, Budget and National Planning forecasted growth of 4.20 per cent for 2022. Due to the ongoing Russia Ukraine crisis, the Bank Staff forecast that inflation will continue to rise in the medium term to 16.84 per cent by May 2022,” he had stated.
This is contained in the latest inflation report released on Monday by the National Bureau of Statistics (NBS), in which it noted that April’s inflation report showed a 0.9 per cent point higher than the 15.92 per cent recorded in the previous month (March 2022).
According to the Bureau, on a month-on-month basis, the headline index increased by 1.76 per cent in April 2022, compared to the 1.74 per cent increase recorded in the previous month.
It added that the urban inflation rate increased to 17.35 per cent (year-on-year) in April 2022 from 18.68% recorded in April 2021, while the rural inflation rate increased to 16.32 per cent in April 2022 from 17.5 per cent in April 2021.
“In April 2022, the consumer price index, (CPI) which measures inflation increased to 16.82 per cent on a year-on-year basis. This is 1.3 per cent points lower compared to the rate recorded in April 2021 (18.12) per cent. This means that the headline inflation rate slowed down in April when compared to the same month in the previous year. Increases were recorded in all COICOP divisions that yielded the Headline index,” the NBS stated.
“On a month-on-month basis, the Headline index increased to 1.76 per cent in April 2022, this is a 0.02 per cent rate higher than the rate recorded in March 2022 (1.74) per cent.
“The percentage change in the average composite CPI for the twelve months ending April 2022 over the average of the CPI for the previous twelve months period is 16.45 per cent, showing a 0.1 per cent decrease compare to the 16.54 per cent recorded in March 2022.
“The urban inflation rate increased to 17.35 per cent (year-on-year) in April 2022 from 18.68 per cent recorded in April 2021, while the rural inflation rate increased to 16.32 per cent in April 2022 from 17.57 per cent in April 2021.
“On a month-on-month basis, the urban index rose to 1.78 per cent in April 2022, up by 0.02 from the rate recorded in March 2022 (1.76), while the rural index also rose to 1.74 per cent in April 2022, up by 0.01 from the rate that was recorded in March 2022 (1.73) per cent.”
The NBS added that the corresponding twelve-month year-on-year average percentage change for the urban index is 17.01 per cent in April 2022. This is lower than 17.10 per cent reported in March 2022, while the corresponding rural inflation rate in April 2022 is 15.91 per cent compared to 16.00 per cent recorded in March 2022.
“The composite food index rose to 18.37 per cent in April 2022 compared to 22.72 per cent in April 2021. This rise in the food index was caused by increases in the prices of Bread and cereals, Food products n.e.c, Potatoes, yam, and other tubers, Wine, Fish, Meat, and Oils.
“On a month-on-month basis, the food sub-index increased to 2.00 per cent in April 2022, up by 0.01 per cent points from 1.99 per cent recorded in March 2022.
“The average annual rate of change of the Food sub-index for the twelve months ending April 2022 over the previous twelve-month average is 18.88 per cent, 0.34 per cent points from the average annual rate of change recorded in March 2022 (19.21) per cent.”
According to the Bureau, the ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 14.18 per cent in April 2022, up by 1.44 per cent when compared with 12.74 per cent recorded in April 2021.
“On a month-on-month basis, the core sub-index increased to 1.22 per cent in April 2022. This is down by 0.24 per cent when compared with 0.98 per cent recorded in March 2022. The highest increases were recorded in prices of Gas, Liquide fuel, Cleaning, repair and hire of clothing, Clothing materials, other articles of clothing, and clothing accessories.
“The average 12-month annual rate of change of the index was 13.68 per cent for the twelve months ending April 2022; this is 0.12 per cent points higher than the 13.56 per cent recorded in March 2022.”
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