Nigeria’s current inflation rate is the highest in 17 year

Nigeria’s current inflation rate is the highest in 17 year

Inflation rate in Nigeria spiked to 19.64 percent in July 2022, the highest rate recorded in the last 17 years.

The sharp increase was fuelled by the galloping price of food items as a result of a hike in transportation fares and the disruptions of supply chains due to the war between Ukraine and Russia.

Data released by the National Bureau of Statistics (NBS) on Monday indicates that the rise in July’s Headline inflation rate on a month-on-month basis, shows a 1.817 per cent increase, higher than 18.62 per cent recorded in the previous month of June 2022.

The Headline inflation for July 2022 was 19.64 percent on a year-on-year basis; higher by 2.27 percent points compared to the rate recorded in July 2021, which was 17.38 per cent.

This implies that the headline inflation rate increased in July 2022 when compared to the same month in the previous year, and increases were recorded in all COICOP divisions that yielded the Headline index.

According to the NBS, “the percentage change in the average composite CPI for the twelve months ending July 2022 over the average of the CPI for the previous twelve months period was 16.75 percent, showing an increase compared to 16.30 percent recorded in July 2021.”

It pointed out that the composite food index on a year-on-year basis was 22.02 per cent in July 2022, showing a rise compared to 21.03 per cent in July 2021.

“The rise in the food index was caused by increases in prices of Bread and cereals, Food products n.e.c, Potatoes, yam, and other tubers, Meat, Fish, Oil, and fat”, the NBS explained.

On a month-on-month basis, the food sub-index in July 2022 was 2.04 percent, lower than the 2.05 percent recorded in June 2022, while the index for all items less farm produce (Core inflation), which excludes the prices of volatile agricultural produce stood at 16.26 percent in July 2022 on a year-on-year basis; this was higher when compared to 13.72 percent recorded in July 2021.

On a month-on-month basis, the core sub-index was 1.75 per cent in July 2022, higher when compared to 1.56 percent recorded in June 2022.

“The highest increases were recorded in prices of Gas, Liquid fuel, Solid fuel, Passenger transport by road, Passenger transport by Air, Garments, Cleaning, Repair and Hire of clothing”, the NBS further stated.

Looking at the urban and rural distribution of the Consumer Price Index (CPI), the index for urban inflation rate on a year-on-year was 20.09 percent in July 2022.

This was higher compared to 18.01 percent reported in July 2021; on a month-on-month basis, the urban inflation rate was 1.8209 per cent in July 2022, a decrease compared to June 2022 with 1.8211 per cent.

The data from NBS show that rural inflation was 19.22 per cent in July 2022 on a year-on-year basis, higher compared to the 16.75 per cent recorded in July 2021, and on a month-on-month basis, the rural rate was 1.811 per cent in July 2022, also higher than 1.809 per cent in June 2022.

According to the NBS, “All Items Inflation for the States in July 2022 on a year-on-year basis was highest in Akwa Ibom with 22.88 per cent, followed by Ebonyi with 22.51 per cent, and Kogi with 22.08 per cent, while the slowest rise was recorded in Jigawa with 16.62 per cent, followed by Kaduna with 17.04 per cent and Borno with 18.04 per cent.”

On a month-on-month basis, July 2022 recorded the highest increase in Adamawa with 2.87 per cent, followed by Abuja with 2.84 per cent, and Oyo with 2.77 per cent, while Bauchi recorded the slowest rise in month-on-month inflation with 0.82 per cent, followed by Kano with 0.83 per cent and Niger with 1.03 per cent.

The NBS further stated that Food Sub-index Inflation for the States in July 2022 on a year-on-year basis was highest in Kwara with 29.28 per cent, followed by Akwa Ibom with 27.22 per cent, and Kogi with 26.08 per cent, while Kaduna recorded the slowest rise on year-on-year food inflation with 17.16 per cent, followed by Jigawa with 17.46 per cent and Anambra with 19.25 per cent.

On a month-on-month basis, the food inflation sub-index was highest in Kwara with 3.90 per cent, followed by Delta with 3.61 per cent, and Benue with 2.94 per cent, while Taraba, Gombe, and Niger recorded the slowest rise on month-on-month inflation with 0.14 per cent, 0.94 per cent, and 1.13 per cent.

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