Nigeria’s Inflation Rises 18.60% In June, Highest Since 2017
Nigeria’s economy is indeed in its trying period as measured by the consumer price index (CPI), which shows that inflation in the country is judged to be 18.60 per cent in June 2022, up from 17.71 per cent in the previous month.
As usual, an increase in the price of food items is one of the components of inflation rise. Notable are the increases in prices of Bread and cereals, and food products like Potatoes, yams, and other tubers, Meat, Fish, Oil and fat, and Wine. In all, the food sub-index increased to 2.05 per cent in June 2022, up by 0.03 per cent points from 2.01 per cent recorded in May 2022.
Also, prices of Gas, Liquid fuel, Solid fuel, Garments, Passenger transport by road, Cleaning, Repair and Hire of clothing, Passenger travel by Air
The June inflation rise was predicted earlier and higher than the forecast access Bank’s Economic Intelligence Unit report comes barely 24 hours after forecasted inflation to rise to 18.51 per cent in June from the 17.71 per cent figure of May 2022.
The EIU report attributed rising food and energy prices as drivers for the projected inflationary surge.
However, the National Bureau of Statistics (NBS) in its consumer price index (CPI) report for June 2022, released on Friday says the current rate is the highest since February 2017.
“In June 2022, the inflation rate increased to 18.60 per cent on a year-on-year basis. This is 0.84 per cent points higher compared to the rate recorded in June 2021, which is 17.75 per cent”.
This means that the headline inflation rate increased in June 2022 when compared to the same month in the previous year (i.e., June 2021). Increases were recorded in all COICOP divisions that yielded the Headline index, according to the NBS.
The Bureau also stated that “on a month-on-month basis, the Headline inflation rate increased to 1.82 per cent in June 2022, this is 0.03 per cent higher than the rate recorded in May 2022 (1.78 per cent) The percentage change in the average composite CPI for the twelve months ending June 2022 over the average of the CPI for the previous twelve months period is 16.54 per cent, showing a 0.62 per cent increase compared to 15.93 per cent recorded in June 2021.
In the month, the urban inflation rate increased to 19.09 per cent (year-on-year); a 0.74 per cent increase compared to 18.35 per cent recorded in June 2021. On a month-on-month basis, the urban inflation rate rose to 1.82 per cent in June 2022, this is a 0.01 per cent increase compared to May 2022 (1.81 per cent).
The NBS however, said the corresponding twelve-month average percentage change for the urban index is 17.09 per cent in 2022. This is 0.58 per cent higher compared to 16.51 per cent reported in June 2021.
“The rural inflation rate increased to 18.13 per cent in June 2022 (year-on-year) basis; this is a 0.97 per cent increase compared to 17.16 recorded in June 2021.
On a month-on-month basis, the rural index rose to 1.81 per cent in June 2022, up by 0.05 per cent from the rate recorded in May 2022 (1.76 per cent), while the corresponding twelve-month average percentage change for the rural inflation rate in June 2022 is 16.02 per cent. This is 0.66 per cent higher compared to 15.36 per cent recorded in June 2021.
According to the NBS, the composite food index rose to 20.60 per cent in June 2022 on a year-on-year basis; the rate of changes in average price level declined by 1.23 per cent compared to 21.83 per cent
in June 2021.
The rate of changes in food prices compared to the same period last year was higher due to higher foods prices volatility caused by COVID 19. This rise in the food index was caused by increases in prices of Bread and cereals, Food products n.e.c, Potatoes, yam, and other tubers, Meat, Fish, Oil and fat, and Wine. On a month-on-month basis, the food sub-index increased to 2.05 per cent in June 2022, up by 0.03 per cent points from 2.01 per cent recorded in May 2022.
“The average annual rate of change of the Food sub-index for the twelve months ending June 2022 over the previous twelve-month average is 18.62 per cent, which is 1.10 per cent points decline from the average annual rate of change recorded in June 2021 (19.72 per cent),” the NBS added.
The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 15.75 per cent in June 2022 on a year-on-year basis, up by 2.66 per cent when compared to 13.09 per cent recorded in June 2021. On a month-on-month basis, the core sub-index increased to 1.56 per cent in June 2022. This is down by 0.31 per cent when compared to 1.87 per cent recorded in May 2022.
The highest increases were recorded in prices of Gas, Liquid fuel, Solid fuel, Garments, Passenger transport by road, Cleaning, Repair and Hire of clothing, and Passenger travel by Air The average 12-month annual rate of change of the index was 14.06 per cent for the twelve months ending June 2022; this is 2.31 per cent points higher than the 11.75 per cent recorded in June 2021.
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