JUST-IN: Inflation Rises To 22.79%

Headline inflation rate for the month of June 2023 rose to 22.79% compared to May 2023 headline inflation rate which was 22.41%, the National Bureau of Statistics (NBA) said in report released on Monday.

The latest figure represents an increase of 0.38% points when compared to May 2023 headline inflation rate. Similarly, on a year-on-year basis, the headline inflation rate was 4.19 percentage points higher compared to the rate recorded in June 2022, which was 18.60%.

The increase in the headline index for June 2023 is attributed to increases in some items in the basket of goods and services at the divisional level.

Increases were witnessed in food & non-alcoholic beverages (11.81%), housing, water, electricity, gas & other fuel (3.81%), clothing & footwear (1.74%), transport (1.48%), furnishings & household equipment & Maintenance (1.15%), Education (0.90%) and health (0.68%).

Others are miscellaneous goods & services (0.38%), restaurants & Hotels (0.28%), alcoholic beverages, tobacco & Kola (0.25%). while recreation & culture increased by 0.16% and communication also increased by 0.15% each.

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On a month-on-month basis, the headline inflation rate in June 2023 stood at 2.13%, this shows an average increase of 0.19 percentage points on the general price level relative to May 2023.

According to the NBS figure, the percentage change in the average CPI for the twelve months ending June 2023 over the average of the CPI for the previous twelve months was 21.54%, showing a 5.00% increase compared to the 16.54% recorded in June 2022.

The food component sub-index for June 2023 increased by 25.25% on a year-on-year basis; this was 4.65% points higher relative to the rate recorded in June 2022 (20.60%).

The rise in Food index 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.

Similarly, the Food inflation rate on a month-on-month basis, in June 2023 rose to 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%, which indicates an increase of 5.41% points from the average annual rate of change recorded in June 2022 (18.62%).

Core inflation, which is all items less farm produce, that is excluding the prices of volatile agricultural produce, rose to 20.27% in June 2023 on a year-on-year basis; this was up by 4.53% when compared to the 15.75% recorded in June 2022.

The 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 stood at 1.74% in June 2023. This shows a decline of 0.07% when compared to the 1.81% recorded in May 2023.

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

The inflation rate in June 2023 for Urban consumers was 24.33% on a year-on-year basis. This indicated an increase of 5.23% points higher compared to the 19.09% recorded in June 2022.

Similarly, urban month-on-month inflation rate rose to 2.31% in June 2023, which was 0.21% points higher compared to May 2023 (2.09%).

The corresponding twelve-month average for the Urban inflation rate was 22.38% in June 2023. This was 5.30% points higher compared to the 17.09% reported in June 2022.

Inflation rate for rural consumers in the month of June 2023 was 21.37% on a year-on-year basis; this was 3.25% points higher compared to the 18.13% recorded in June 2022.

On a month-on-month basis, the Rural inflation rate in June 2023 was 1.96%, up by 0.16% points compared to May 2023 (1.80%).

The corresponding twelve months average for the Rural inflation rate in June 2023 was 20.76%. This was 4.75% points higher compared to the 16.02% recorded in June 2022.

6. The analyses of the states show that the all-item index for June 2023, on a year-on-year basis was highest in Lagos (25.75%), followed by Ondo (25.40%), Kogi (25.23%). Borno (20.44%), Zamfara (20.93%) and Ekiti (21.06%) recorded the slowest rise in headline inflation on a year-on-year basis, respectively.

On a month-on-month basis, June 2023 recorded the highest increases in Ogun (3.21%), Plateau (3.05%), and Jigawa (3.00%). On the other hand Zamfara (1.40%), Delta (1.42%) and Rivers (1.54%) recorded the slowest rise on month-on-month inflation.

7. State level analyses of the food index in June 2023, on a year-on-year basis, showed the highest increases in Kwara (30.80%), Lagos (30.37%), and Kogi (29.71%), respectively. While Zamfara (21.38%), Sokoto (21.60%) and Borno (21.75%) recorded the slowest rise in Food inflation on a year-on-year basis.

On a month-on-month basis, Food inflation for June 2023 was highest in Kwara (3.82%), Abuja (3.64%), and Ogun (3.56%), while Rivers (0.75%), respectively. Zamfara (1.33%) and Adamawa (1.47%) recorded the slowest rise in food inflation rate on a month-on-month basis.