Inflation Rises For 5 Straight Months To 22.41%

Intense insecurity that has largely affected the food supply chain in Nigeria has caused a spike in headline inflation to a record 22.41 percent in May 2023 when the nation transitioned to a new administration.

Data from the National Bureau of Statistics (NBS) that was released yesterday showed an increase in headline inflation rate to 22.41 percent relative to April 2023 headline inflation rate which was 22.22 percent.

The rise in the food inflation on year-on-year basis was caused by increases in prices of oil and fat, Yam and other tubers, bread and cereals, fish, potatoes, fruits, meat, vegetable, Spirit.

On a month-on-month basis, the food inflation rate in May 2023 was 2.19 per cent, this was

0.06% higher compared to the rate recorded in April 2023 (2.13 per cent).

The data by statistics bureau showed that in May 2023 inflation rate recorded an increase of 0.19 percent points when compared to April 2023 headline inflation rate.

Similarly, on a year-on-year basis, the headline inflation rate was 4.70 per cent points higher compared to the rate recorded in May 2022, which was (17.71 per cent).

What that means is that the headline inflation rate (year-on-year basis) increased in the month of May 2023 when compared to the same month in the preceding year (i.e., May 2022).

Likewise, on a month-on-month basis, the headline inflation rate in May 2023 was 1.94 percent, which was 0.03 percent higher than the rate recorded in April 2023 (1.91 percent).

This means that in the month of May 2023, on the average, the general price level was 0.03 percent higher relative to April 2023.

The NBS latest data showed a percentage change in the average CPI for the twelve months period ending May 2023 over the average of the consumer price index for the previous 12 months period was 21.20 percent, showing 4.75 per cent increase compared to 16.45 per cent recorded in May 2022.

On a year-on-year basis, in the month of May 2023, the Urban inflation rate was 23.74 percent, this was 5.50 per cent point higher compared to the 18.24 per cent recorded in May 2022.

On a month-on-month basis, the Urban inflation rate was 2.09 per cent in May 2023, this was 0.05 per cent points higher compared to April 2023 (2.05 per cent). The corresponding twelve-month average for the Urban inflation rate was 21.95 per cent in May 2023. This was 4.95 per cent points higher compared to the 17.00 percent reported in May 2022.

Also, rural inflation rate in May 2023 was 21.19 per cent on a year-on-year basis; this was 3.98 percent higher compared to the 17.21 per cent recorded in May 2022. On a month-on-month basis, the Rural inflation rate in May 2023 was 1.80 per cent, up slightly by 0.02 per cent points compared to April 2023 (1.78 per cent).

The corresponding twelve-months average for the Rural inflation rate in May 2023 was 20.50 per cent. This was 4.59 per cent higher compared to the 15.91 per cent recorded in May 2022.

The food inflation rate in May 2023 was 24.82 percent on a year-on-year basis; which was 5.33 per cent points higher compared to the rate recorded in May 2022 (19.50 per cent).

The average annual rate of Food inflation for the twelve-months ending May 2023 over the previous twelve-month average was 23.65 per cent, which was 4.97 per cent points increase from the average annual rate of change recorded in May 2022 (18.68 per cent).