Nigeria’s inflation hits 5-year high of 18.6% in June

Nigeria’s inflation hits 5-year high of 18.6% in June

BY Onome Amuge

After experiencing an upswing in the month of May 2022 at 17.71 percent, Nigeria’s inflation figure climbed to 18.6 percent in June, its fifth consecutive monthly rise and highest level in over five years (65 months), amid a hike in energy and food prices, the National Bureau of Statistics (NBS) disclosed in its latest consumer price index (CPI) report.

The statistical agency noted that the last time the inflation rate in the country stood at a higher figure was in January 2017, when it stood at 18.72 percent.

According to the current CPI report, there were increases reported across all classification of individual consumption by purpose (COICOP) divisions that yielded the headline index.

On a month-on-month basis, the inflation rate rose to 1.82 percent in the month under review, 0.03 percent higher than the 1.78 percent rate recorded the previous month (May 2022).

Also, the food index rose to 20.6 percent in June 2022 from 19.5 percent in May, attributed to increases in prices of bread and cereals, food products, such as potatoes, yams and other tubers, soft drinks, oils and fats, and wine.

The NBS also reported that on a month-on-month basis, the food sub-index increased to 2.05 percent, up 0.03 percent points from 2.01 percent recorded in May.

The highest increases were recorded in prices of gas, liquid fuel, solid fuel, garments, passenger transport by road, cleaning, repair, hire of clothing, and passenger travel by air.

On a month-on-month basis, the core sub-index increased to 1.56 percent in June 2022. This is down by 0.31 percent when compared to 1.87 percent recorded in May 2022.

All Items Inflation

On the state profile, the highest all items inflation on a year-on-year basis was recorded in Bauchi at 21.99 percent, followed by Kogi at 21.37 percent, and Ebonyi at 20.73 percent.

On the other hand, Adamawa, Sokoto, and Jigawa recorded the slowest rise in headline year-on-year inflation at 16.14 percent, 16.31 percent, and 16.37 percent, respectively.

On a month-on-month analysis, Kogi (2.69 percent), Ondo (2.65 percent) and Kaduna (2.61 percent) recorded the highest increases in June 2022, while Adamawa (-0.26 percent), Abuja (-0.03 percent), and Sokoto (-0.79 percent) recorded the slowest rise.

Food Inflation

On a year-on-year analysis, food inflation was highest in Kwara State at 25.62 percent, followed by Kogi at 24.81 percent, and Rivers at 24.34 percent, while Jigawa, Sokoto and Kaduna recorded the slowest rise in year-on-year food inflation at 16.01 percent, 16.24 percent and 17.75 percent, respectively.

On a month-on-month analysis, food inflation was highest in Nasarawa at 3.10 percent, Ekiti (2.96 percent) and Sokoto (2.81 percent), while Akwa Ibom and Anambra (1.35 percent), and Benue (1.37 percent) recorded the slowest month-on-month rise.