Food prices push Nigeria’s inflation to 22.79%

The Nigeria’s inflation has hit 22.79% for June 2023, according to the National Bureau of Statistics (NBS).

The Headline inflation rate rose to 22.79% from 22.41% in May 2023 on account of higher food prices.

The June 2023 Headline inflation rate showed an increase of 0.38% points when compared to May 2023 headline inflation rate.

The report said the contributions of items on the divisional level to the increase in the headline index are food and non-alcoholic beverages at 11.81 per cent and housing, water, electricity, gas and other fuel at 3.81 per cent.

Others are clothing and footwear at 1.74 per cent; transport at 1.48 per cent; furnishings, household equipment and maintenance at 1.15 per cent and education at 0.9 per cent, and health at 0.68 per cent.

On a year-on-year basis, the Headline inflation rate was 4.19% points higher compared to the rate recorded in June 2022, which was 18.60%.

This shows that the Headline inflation rate (year-on-year basis) increased in June 2023 when compared to the same month in the preceding year (i.e., June 2022).

On a month-on-month basis, the Headline inflation rate in June 2023 was 2.13%, this was 0.19% points higher than the rate recorded in May 2023 (1.94%). This means that in June 2023, on average, the general price level was 0.19% higher relative to May 2023.

The Food inflation rate in June 2023 was 25.25% on a year-on-year basis; this was 4.65% points higher relative to the rate recorded in June 2022 (20.60%).

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The rise in Food inflation on a year-on-year basis was caused by increases in prices of oil and fat, Bread and cereals, Fish, Potatoes, Yam and other tubers, Fruits, Meat, Vegetable, Milk, Cheese, and Eggs. On a month-on-month basis, the Food inflation rate in June 2023 was 2.40%, this was 0.21% points higher compared to the rate recorded in May 2023 (2.19%).

The average annual rate of Food inflation for the twelve months ending June 2023 over the previous twelve-month average was 24.03%, this was 5.41% points increase from the average annual rate of change recorded in June 2022 (18.62%).

The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 20.27% in June 2023 on a year-on-year basis; up by 4.53% when compared to the 15.75% recorded in June 2022.

The highest increases were recorded in prices of Passenger Transport by Air, Gas, Vehicles Spare Parts, Liquid Fuel, 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 1.74% in June 2023. It stood at 1.81% in May 2023, down by 0.07%.

The average twelve months annual inflation rate was 18.71% for the twelve months ending June 2023; this was 4.65% points higher than the 14.06% recorded in June 2022.

The Star