Nigeria’s Inflation Rate Peaks At 19.64% — Highest Since 2005

Nigeria’s Inflation Rate Declined to 17.75% in June, Says NBS
Nigeria’s Inflation Rate Declined to 17.75% in June, Says NBS

The consumer price index (CPI), which measures the rate of change in good and service prices, increased to 19.64 percent in July 2022, up from 18.60 percent the previous month. This is the highest rate since September 2005.

This was announced by the National Bureau of Statistics (NBS) on Monday in its consumer price index (CPI) report for July 2022. The statistic is also 2.27 percentage points higher than the 17.38 percent rate reported in July 2021. As a result of this trend, the headline inflation rate rose in July 2022 compared to the same month the previous year (July 2022).

According to the report, increases were recorded in all classifications of individual consumption according to purpose (COICOP) divisions that yielded the headline index.

“On a month-on-month basis, the Headline inflation rate in July 2022 was 1.817 %, which was 0.001% higher than the rate recorded in June 2022 (1.816 %),” the report reads.

“The percentage change in the average CPI for the twelve-month period ending July 2022 over the average CPI for the previous twelve-month period was 16.75%, showing a 0.46% increase compared to the 16.30% recorded in July 2021.”

FOOD INFLATION HITS 22% AS PRICES OF BREAD SOAR

The report added that food inflation rose to 22.02 percent in July, an uptick compared to 20.60 percent in June. This rise in the food index was caused by increases in prices of bread and cereals, food products, potatoes, yam and other tubers, meat, fish, oil, and fat.

“On a month-on-month basis, the food inflation rate in July was 2.04%, this was a 0.01% insignificant decline compared to the rate recorded in June 2022 (2.05%),” the report adds.

“This decline is attributed to a reduction in the prices of some food items like tubers, maize, garri, and vegetables.”

In analysing price movements, the report said Akwa Ibom, Ebonyi and Kogi states witnessed the highest prices. Meanwhile, Jigawa, Kano and Borno recorded the slowest rise in inflation.

“In July 2022, all items’ inflation rate on a year-on-year basis was highest in Akwa Ibom (22.88%), Ebonyi (22.51%), Kogi (22.08%), while Jigawa (16.62%), Kaduna (17.04%) and Borno (18.04%) recorded the slowest rise in headline Year-on-Year inflation,” the report said.

“However, on a month-on-month basis, July 2022 recorded the highest increases in Adamawa (2.87%), Abuja (2.84%), Oyo (2.77%), while Bauchi (0.82%), Kano (0.83%) and Niger (1.03%) recorded the slowest rise on month-on-month inflation.”

RISING INFLATION TO PUSH MORE NIGERIANS INTO POVERTY

The Russia-Ukraine situation is still having a disastrous impact on the global economy, resulting in soaring oil and food prices. According to the United Nations Development Programme, households in low-income nations are the most affected, spending 42 percent of their family income on food (UNDP). The World Bank predicted that inflation in Nigeria will force an additional one million people into poverty by the end of 2022.

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