Nigeria’s Inflation Rate Increases To 22.41%

Analysts Expect Inflation Rate To Jump To 18.2% In May
Analysts Expect Inflation Rate To Jump To 18.2% In May

Nigeria saw consumer price inflation worsen in May 2023 due to the fuel subsidy crisis, rising to 22.41% from 22.22% in April of the same year, according to data from National Bureau of Statistics (NBS).

However, the gain fell below market expectations. Some analysts predict that the consumer price index will double in the future due to the immediate impact of fuel subsidies on household finances.

However, analysts say that because the inflation figure is a lagging indicator, the impact of fuel subsidies on gasoline prices increasing by more than 250% has not been taken into account.

NBS said in the report that headline inflation in Nigeria maintained its upward trend in May, rising 19 basis points to 22.41% year-on-year. Similarly, on a monthly basis, headline inflation rose 3 basis points to 1.94% from 1.91% in April.

Food inflation increased by 21 basis points to 24.82% year-on-year, from 24.61% in April 2023. Rising food inflation was driven by higher prices of oil and fats, yams, and yams. and other tubers, bread and cereals, fish, potatoes, fruit. , Meat, Vegetables and Spirits.

On a monthly basis, food inflation increased to 2.19% from 2.13% recorded in the previous month. Elsewhere, core inflation fell 7 basis points to 20.06% from 20.13%.

Significant pressures were observed on the prices of Gasoline, Air Passenger Transport, Liquid Fuels, Vehicle Parts, Fuels and Lubricants for Personal Transport Equipment, Medical Services and Passenger Transport. Road. The statistics office said the benchmark rose 36 basis points to 1.81% month-on-month in April 2023.

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