…as prices of food, non-alcoholic beverages soar
Nigeria’s headline inflation in June 2023 rose to 22.79 percent, 0.38 percent points higher than the 22.41 percent it was in May 2023.
This sharp rise may not be unconnected with the removal of fuel subsidy which saw prices of commodities including food jump higher in quick response.
President Bola Tinubu had on his inauguration day announced that fuel subsidy is gone, a statement that has been criticised by economic experts who believe the announcement was ill timed.
The National Bureau of Statistics in its June 2023 consumer price index (CPI) report released on Monday said, on a year-on-year basis, the Headline inflation rate was 4.19 percent points higher compared to the rate recorded in June 2022, which was 18.60 percent. 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).
The NBS report said food and non-alcoholic beverages contributed the most to the rise in inflation with 11 percent. This was followed by Housing, Water, Electricity. Gas & Other Fuel which contributed 3.81 percent. While communication contributed the least with 0.15 percent.
According to the NBS, “The percentage change in the average CPI for the 12 months period ending June 2023 over the average of the CPI for the previous 12 months period was 21.54 percent, showing a
5.00 percent increase compared to 16.54 percent recorded in June 2022.
URBAN INFLATION
On a year-on-year basis, the Urban inflation rate in June 2023 was 24.33 percent, this was 5.23 percent points higher compared to the 19.09 percent recorded in June 2022. On a month-on-month basis,
the Urban inflation rate was 2.31 percent in June 2023, which was 0.21 percent points higher compared to May 2023 (2.09 percent). The corresponding 12 month average for the Urban inflation rate was
22.38 percent in June 2023. This was 5.30 percent points higher compared to the 17.09 percent reported in June
2022.
RURAL INFLATION
The Rural inflation rate in June 2023 was 21.37 percent on a year-on-year basis; this was 3.25 percent points higher compared to the 18.13 percent recorded in June 2022. On a month-on-month basis, the Rural inflation rate in June 2023 was 1.96 percent, up by 0.16 percent points compared to May 2023 (1.80 percent). The corresponding twelve months average for the Rural inflation rate in June 2023 was 20.76 percent. This was 4.75 percent points higher compared to the 16.02 percent recorded in June 2022.