Nigeria’s Inflation Rises To 22.79% In June 2023

Nigeria’s inflation rate rose to 22.79 per cent in June 2023, representing 0.38 per cent points increase from the 22.41 per cent recorded in the general price level of the economy in the preceding month.

The National Bureau of Statistics (NBS) in its ‘Consumer Price Index June 2023’ report posted on its website on Monday, indicated that on a year-on-year basis, the headline inflation rate was 4.19 per cent points higher than the rate recorded in the corresponding month of 2022, which stood at 18.60 per cent.

The report also reflected that based on the divisional level in June this year, Food and non-alcoholic beverages which recorded 11.81 per cent rise contributed highest to the inflation, followed by Housing, water, electricity, gas and other fuel with 3.81 per cent, while communication at 0.15 per cent was the least contributor to the month’s inflation rate.

A further analysis of the NBS’ CPI report showed that the uptick in June 2023 year-on-year (Y-o-Y) inflation rate, was largely driven by the food index, as food inflation peaked at 25.25 per cent compared to 24.82 per cent recorded in May 2023.

The statistics agency disclosed that the rise in food inflation Y-o-Y was caused by increases in prices of oil and fat, bread and cereals, fish, potatoes, yam and other tubers, fruits, meat, vegetable, milk, cheese, and eggs.

On a month-on-month basis, it clarified that the Food inflation rate in the month under review was 2.40 per cent, representing 0.21 per cent points higher than the 2.19 per cent recorded in May 2023

Similarly, the Bureau indicated that in the month under review, the “All items less farm produce” or Core inflation increased to 20.27 per cent Y-o-Y from 20.06 per cent in May 2023 and linked the increase in the core index primarily to the petrol subsidy removal by the Federal Government, which spiked the price of petrol increase from an average of N185 per litre to N500 per litre or above, depending on the point of sale.

On a month-on-month basis, the core inflation rate was 1.74 per cent in June 2023. It stood at 1.81 per cent in May 2023, down by 0.07 per cent.

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

On a year-on-year basis, the Urban inflation rate in June 2023 was 24.33 per cent, this was 5.23 per cent points 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 2023, which was 0.21 per cent points higher compared to May 2023 (2.09 per cent).

The corresponding twelve month average for the Urban inflation rate was 22.38 per cent in June 2023. This was 5.30 per cent points higher compared to the 17.09 per cent reported in June 2022.

The Rural inflation rate in June 2023 was 21.37 per cent on a year-on-year basis; this was 3.25 per cent points higher compared to the 18.13 per cent recorded in June 2022. On a month-on-month basis, the Rural inflation rate in June 2023 was 1.96 per cent, up by 0.16 per cent points compared to May 2023 (1.80 per cent).

The corresponding twelve months average for the Rural inflation rate in June 2023 was 20.76 per cent. This was 4.75 per cent points higher compared to the 16.02 per cent recorded in June 2022.