Nigeria’s inflation rate soars for 5th consecutive month to 22.41% in May 2023

By Onome Amuge

Nigeria’s inflation rate rose  for the fifth straight month in the year to 22.41 per cent in May 2023,representing an increase of 0.19  percentage points from 22.22 per cent recorded in April 2023.

This is according to the latest inflation report by the National Bureau of Statistics (NBS),which measured the rate of changes in prices of goods and services.

The report further noted  that on a year-on-year basis, the headline inflation rate was  4.70 per centage points higher compared to 17.71 per cent recorded in the corresponding period of May 2022.

The 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 11.61 per cent; housing, water, electricity, gas & other fuel which increased 3.75 per cent; clothing & footwear which were up 1.71 per cent; transport which increased 1.46 per cent; 1.13 per cent increase in the cost of furnishings, household equipment & maintenance;while  the education index maintained a 0.88 per cent increase.

There was no change in the percentage  increase of the divisional level  health remained at 0.67 per cent; miscellaneous goods & services maintained its 0.37 per cent rate from the previous month; while  restaurant & hotels; alcoholic beverage, tobacco & kola ; recreation & culture , and communication, maintained the previous month’s increases of 0.27 per cent,0.24 per cent, 0.15 per cent, and  0.15 per cent respectively.

Meanwhile, on a month-on-month basis, the headline inflation rate in May 2023 was 1.94 per cent, which was 0.03 per cent higher than the 1.91 per cent recorded in April 2023. This, according to the NBS, means that in the month of May 2023, on the average, the general price level was 0.03 per cent higher relative to April 2023.

Also, the percentage change in the average CPI for the twelve months period ending May 2023 over the average of the CPI for the previous twelve months period was 21.20 per cent, indicating  4.75 per cent increase compared to 16.45 per cent recorded in May 2022.

The Food inflation rate in May 2023 also surged to 24.82 per cent on a year-on-year basis; which was 5.33 per cent points higher compared to 19.50 per cent recorded in May 2022 . The rise in the food inflation on a year-on-year basis was attributed to increases in prices of oil and fat, yam and other tubers, bread and cereals, fish, potatoes, fruits, meat, vegetable, and spirit.

On a month-on-month basis, the food inflation rate in May 2023 stood at 2.19 per cent, this was 0.06 per cent higher compared to 2.13 per cent recorded in April 2023. The average annual rate of food inflation for the twelve-months ending May 2023 over the previous twelve month average was 23.65 per cent, which was 4.97  per cent points increase from the average annual rate of 18.68 recorded in May 2022.

The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 20.06 per cent in May 2023 on a year-on-year basis; up by 5.16 per cent when compared to the 14.90 per cent recorded in May 2022. The highest increases were recorded in prices of gas, passenger transport by air, liquid fuel, vehicles spare parts, fuels and lubricants for personal transport equipment, medical services, passenger transport by road etc.

Likewise,on a month-on-month basis, the core inflation rate was 1.81 per cent in May 2023. It rose by 0.35 per cent from 1.46 per cent in April 2023. The average twelve-months annual inflation rate was 18.33 per cent for the twelve-months ending May 2023; representing 4.50 per cent points increase compared to 13.83 per cent recorded in May 2022.

The urban inflation rate in May 2023 rose to 23.74 per cent, 5.50 percentage points higher year-on-year, compared to the 18.24 per cent recorded in May 2022.

On a month-on-month basis, the urban inflation rate stood at 2.09 per cent, 0.05 percentage points higher  compared to 2.05 per cent recorded in May 2023.

Meanwhile, the corresponding twelve-months average for the urban inflation rate was 21.95 per cent in May 2023,4.95  percentage points higher compared to the 17.00 per cent recorded in May 2022.

In a similar trajectory, the rural inflation rate was higher in May 2023 at 21.19 per cent, rising 3.98 percentage points on a year-on-year basis,compared to the 17.21 per cent recorded in May 2022. On a month-on-month basis, the rural inflation rate in May 2023 was 1.80 per cent, up slightly by 0.02 per cent points compared to 1.78 per cent in April 2023.

The NBS also noted that the corresponding twelve-months average for the rural inflation rate in May 2023 was 20.50 per cent. This was 4.59 per cent higher than 15.91 percent recorded in May 2022.