The National Bureau of Statistics (NBS) has reported that Nigeria’s headline inflation rate reached a staggering 24.08% in July 2023. This marks a significant increase of 1.29% compared to the 22.79% recorded in June.
The NBS disclosed these findings in its Consumer Price Index (CPI) and Inflation Report for July, which was released in Abuja on Tuesday. The report reveals that on a year-on-year basis, July’s inflation rate was 4.44% higher than the rate recorded in July 2022, which stood at 19.64%.
According to the report, the main contributors to the increase in the headline index were food and non-alcoholic beverages, accounting for 12.47%, and housing, water, electricity, gas, and other fuels, accounting for 4.03%. Other items with significant contributions include clothing and footwear (1.84%), transport (1.57%), furnishings, household equipment, and maintenance (1.21%), education (0.97%), and health (0.72%). Additional contributions came from miscellaneous goods and services (0.40%), restaurants and hotels (0.29%), alcoholic beverages, tobacco, and kola nut (0.26%), recreation and culture (0.17%), and communication (0.16%).
On a month-on-month basis, the headline inflation rate in July 2023 stood at 2.89%, indicating a 0.76% rise compared to June 2023. This means that, on average, the general price level was 0.76% higher in July 2023 relative to June 2023.
The report highlights that the percentage change in the average CPI for the 12 months ending in July 2023, compared to the previous 12-month period, was 21.92%. This indicates a 5.17% increase compared to the 16.75% recorded in July 2022.
Furthermore, the report states that the food inflation rate in July was 26.98% on a year-on-year basis, which is 4.97% higher compared to July 2022. The rise in food inflation can be attributed to increases in prices of oil and fats, bread and cereals, fish, potatoes, yams and other tubers, fruits, meat, vegetables, milk, cheese, and eggs.
On a month-on-month basis, food inflation in July stood at 3.45%, a 1.06% increase compared to June. The report attributes this rise in food inflation to increases in prices of bread and cereals, potatoes, yams and other tubers, fish, and oil and fat.
Excluding volatile agricultural produce, the report reveals that the all items less farm produce or core inflation rate stood at 20.47% in July on a year-on-year basis. This represents a 4.41% increase compared to July 2022.
The report also highlights the highest increases in prices recorded in passenger transport by air and road, gas, vehicle spare parts, medical services, maintenance, and repair of personal transport, among others.
On a month-on-month basis, the core inflation rate in July 2023 was 2.11%, indicating a 0.34% rise compared to June 2023. The average 12-month annual inflation rate for the period ending July 2023 was 18.84%, which is 4.31% points higher than the 14.53% recorded in July 2022.
When analyzing inflation rates in urban areas, the report states that the year-on-year urban inflation rate in July was 25.83%, representing a 5.74% increase compared to July 2022. On a month-on-month basis, the urban inflation rate stood at 3.05% in July, indicating a 0.75% rise compared to June.
Similarly, the year-on-year rural inflation rate in July was 22.49%, which is 3.26% higher compared to July 2022. On a month-on-month basis, the rural inflation rate in July was 2.74%, a 0.78% increase compared to June.
The report also provides a state-by-state analysis of inflation rates. In July, Kogi recorded the highest all items inflation rate on a year-on-year basis, followed by Lagos and Ondo. Conversely, Borno recorded the slowest rise in headline inflation on a year-on-year basis, followed by Jigawa and Sokoto.
When considering month-on-month inflation, Kogi had the highest rate, followed by Abia and Akwa Ibom. Conversely, Jigawa had the slowest rise in month-on-month inflation, followed by Taraba and Yobe.
Regarding food inflation, Kogi, Lagos, and Bayelsa had the highest rates on a year-on-year basis, while Jigawa, Sokoto, and Kebbi recorded the slowest rise. On a month-on-month basis, Kogi, Akwa Ibom, and Bayelsa had the highest food inflation rates, while Taraba, Jigawa, and Yobe had the slowest rise.
These findings from the NBS illustrate the persistent and alarming increase in Nigeria’s inflation rate, which poses substantial challenges for the Nigerian economy and its citizens. It is crucial for policymakers and stakeholders to address the underlying factors driving this inflationary trend to mitigate its adverse effects.
This article was originally published by NAN.
