Nigeria’s inflation rate soars for 7th consecutive month to 24.08% in July

By Onome Amuge.

Nigeria’s inflation rate rose  for the seventh straight month in the year to 24.08 per cent in July 2023,representing an increase of 1.29  percentage points from 22.79 per cent recorded in June 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  4.44 percentage points higher compared to 19.64 per cent recorded in the corresponding period of July 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 12.47 per cent; housing, water, electricity, gas & other fuel which increased 4.03 per cent; clothing & footwear which were up 1.84 per cent; transport which increased 1.57 per cent; 1.21 per cent increase in the cost of furnishings, household equipment & maintenance;while  the education index surged to 0.95 per cent.

There was also percentage  increases in other components of the the divisional level  as health rose to  0.72 per cent; miscellaneous goods & services  rose to 0.40 per cent rate from the previous month; while  restaurant & hotels; alcoholic beverage, tobacco & kola ; recreation & culture ,recorded month-on-month increases of 0.29 per cent,0.26 per cent, 0.17 per cent, respectively.Also, the communication divisional level rose to 0.16 per cent.

Meanwhile, on a month-on-month basis, the headline inflation rate in July 2023 was 2.89 per cent, which was 0.76 per cent higher than the 2.13 per cent recorded in May 2023. This, according to the NBS, means that in the month of  June 2023, on the average, the general price level was 0.76 per cent higher relative to July 2023.

The percentage change in the average CPI for the twelve months period ending July 2023 over the average of the CPI for the previous twelve months period was 21.92 per cent, indicating  5.17 per cent increase compared to 16.75 per cent recorded in July 2022.

The food inflation rate in July 2023 also surged to 26.98 per cent on a year-on-year basis; which was 4.97 per cent points higher compared to 22.02 per cent recorded in July 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,cheese, meat, vegetable, and eggs.

On a month-on-month basis, the food inflation rate in July 2023 stood at 3.45  per cent, 1.06 per cent higher  against 2.40 per cent recorded in June 2023. The average annual rate of food inflation for the twelve-months ending June 2023 over the previous twelve month average stood at 24.46 per cent, which was a 5.71  per cent point increase from the average annual rate of 18.75 recorded in July 2022.

Meanwhile, the “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 20.47 per cent in July 2023 on a year-on-year basis; up by 4.41 per cent when compared to the 16.06  per cent recorded in July 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.

On a month-on-month basis, the core inflation rate stood at 2.11 per cent in July 2023, up by 0.34 per cent from 1.77 per cent in June 2023. The average twelve months annual inflation rate was 18.84 per cent for the twelve months ending July 2023; which was 4.31 percentage points higher than the 16.06 per cent recorded in July 2022.

The urban inflation rate in  July 2023 surged to 25.83 per cent, 5.74 percentage points higher year-on-year, compared to the 20.09 per cent recorded in July 2022. On a month-on-month basis, the urban inflation rate stood at 3.05 per cent, 0.75 percentage points higher  compared to 2.31 per cent recorded in June 2023. The corresponding twelve-months average for the urban inflation rate was 22.87 per cent in July 2023,5.59  percentage points higher against 17.29 per cent recorded in June 2022.

In a similar trajectory, the rural inflation rate was higher in June 2023 at 22.49 per cent, rising 3.26 percentage points on a year-on-year basis,compared to 19.22 per cent recorded in July 2022. On a month-on-month basis, the rural inflation rate  was 2.74 per cent, up by 0.78 per cent compared to 1.96 per cent in May 2023.

The NBS also noted that the corresponding twelve-months average for the rural inflation rate in July 2023 was 21.04 per cent. This was 5.74 per cent higher than 20.09 per cent recorded in June 2022.