May 30, 2023

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Nigeria’s inflation rate rises to 19.6%, highest in 17 years

More pain for Nigerians as inflation rises to 16.82% in April

Nigeria’s inflation rate rose to 19.64 per cent in July, the National Bureau of Statistics (NBS) said on Monday.

The Consumer Price Index (CPI), which measures the rate of change in prices of goods and services, surged from 18.60 per cent in the previous month.

It is the highest since September 2005.

The NBS said that on a month-on-month basis, the Headline inflation rate in July 2022 was 1.817 per cent, which was 0.001 per cent higher than the rate recorded in June 2022 (1.816 per cent).

The percentage change in the average CPI for the twelve months period ending July 2022 over the average of the CPI for the previous twelve months period was 16.75%, showing a 0.46% increase compared to 16.30% recorded in July 2021,” the report said.

Further breakdown of the report shows that the urban inflation rate rose by 2.08% to 20.09% in July 2022 from 18.01% recorded in July 2021, while the rural inflation rate hit 19.22% from 16.75% recorded in the corresponding period of 2021.

Food inflation

  • The closely watched indicator rose to its highest level in 14 months, standing at 22.02% in July 2022, representing a 1.42%-point increase compared to 20.6% recorded in the previous month. On a month-on-month basis, the food inflation rate in July stood at 2.04%, this is 0.01% lower than 2.05% recorded in the previous month.
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  • According to the NBS, the rise in food inflation was caused by increases in prices of bread and cereals, food products, potatoes, yam and other tubers, meat, fish, oil, and fat.
  • Meanwhile, the average annual rate of food inflation for the twelve-month period ending July 2022 over the previous twelve-month average was 18.75%, which represents a 1.42% points decline from the average annual rate of change recorded in July 2021 (20.16%).

Core inflation

  • The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 16.26% in July 2022, compared to 15.75% recorded in the previous month. This also represents the highest core inflation rate since January 2017, when the rate stood at 17.8%.
  • On a month-on-month basis, the core inflation rate was 1.75% in July 2022. This was up by 0.20% when compared to 1.56% recorded in June 2022.
  • Notably, the highest increases were recorded in prices of Gas, Liquid fuel, Solid fuel, Passenger transport by road, Passenger transport by Air, Garments, Cleaning, Repair and Hire of clothing.
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