Nigeria’s inflation rate soars for 4th straight month to 22.04% in April 2023

By Onome Amuge

Nigeria’s inflation rate rose  for the fourth consecutive month in the year and highest in 17 years  to 22.22 per cent in April 2023,representing an increase of 0.18  per cent from 22.04 per cent posted in March 2023.

This is according to the latest inflation report by the National Bureau of Statistics (NBS),  which reflected the negative impact of the cash scarcity witnessed across the country during the period in review before the CBN’s eventual decision to keep the old N200,N500 and N1,000 notes in circulation until December 2023.

The report, which measured the rate of changes in prices of goods and services, noted that on a year-on-year basis, the headline inflation rate was  5.40 per cent points higher compared to 16.82 per cent recorded in the corresponding period of April 2022. NBS disclosed that the contributions of items on the divisional level to the increase in the headline index include food & non-alcoholic beverages which rose 11.51 per cent; housing, water, electricity, gas & other fuel which increased 3.70 per cent; clothing & footwear which were up 1.70 per cent; transport which increased 1.45 per cent; 1.12 per cent increase in the cost of furnishings, household equipment & maintenance; and 0.88 per cent rise in the education index.

Other increases included health (0.67 per cent); miscellaneous goods & services (0.37 per cent); restaurant & hotels (0.27 per cent); alcoholic beverage, tobacco & kola (0.24 per cent); recreation & culture (0.15 per cent), and communication (0.15 per cent).

The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 20.14 per cent  in April 2023 on a year-on-year basis, up by 5.96 per cent when compared to the 14.18 per cent  recorded in April 2022. The highest increases were recorded in prices of gas, passenger transport by air, liquid fuel, vehicle spare parts, fuels, and lubricants for personal transport equipment, medical services, passenger transport by road, etc. On a month-on-month basis, the Core inflation rate was 1.46 per cent in April 2023. It stood at 1.84 per cent in March 2023, down by 0.38 per cent. The average twelve months annual inflation rate was 17.91 per cent for the twelve months ending April 2023; this was 4.23 percentage points higher than the 13.68 per cent recorded in April 2022.

The report further showed that the percentage change in the average CPI for the twelve months period ending April 2023 over the average of the CPI for the previous twelve months period was  20.82 per cent, indicating a 4.49 percentage increase compared to 17.01 per cent recorded in April 2022.

The urban inflation rate in March 2023 rose to 23.39 per cent, 6.05 percentage points higher year-on-year, compared to the 17.35 per cent recorded in April 2022.

On a month-on-month basis, the urban inflation rate stood at 2.05 per cent, 0.05 percentage points higher  compared to 2.00 per cent recorded in March 2023. Meanwhile, the corresponding twelve-months average for the urban inflation rate was 21.50 per cent in April 2023,4.49  percentage points higher compared to the 17.01 per cent recorded in April 2022.

In a similar trajectory, the rural inflation rate was higher in March at 21.14 per cent, rising 4.49 percentage points on a year-on-year basis,compared to the 17.01 per cent recorded in April 2022. On a month-on-month basis, the rural inflation rate in April stood at 1.78 per cent,up by 0.06 percentage points compared to 1.72 per cent recorded in March 2023. The report also noted that the corresponding twelve-months average for the rural inflation rate in April 2023 was 21.18 per cent, 4.27 percentage points above the 15.91 per cent recorded in April 2022.

The food inflation rate in  April 2023 was 24.61 per cent on a year-on-year basis, which was 6.24 percentage  points higher compared to the 18.37 per cent recorded in the corresponding period of April 2022.

The NBS attributed the increase in food inflation to rise in prices of oil and fat, bread and cereals, fish,potatoes, yam and other tubers, fish, fruits, meat, vegetable, and spirits.

On a month-on-month basis, the food inflation rate in March 2023 was 2.13  per cent, which was 0.06 per cent higher  compared to 2.07 per cent  reported in March 2023. The average annual rate of food inflation for the twelve-months ending April 2023 over the previous twelve-months average was 23.22 per cent, which was a 4.35 percentage points increase from 18.88 per cent,the average annual rate of change recorded in April 2022.