Nigeria’s inflation rate rose to 22.79% in June 2023, representing 0.38% points increase from the 22.41% recorded in the general price level of the economy in the preceding month.
The National Bureau of Statistics (NBS) in its ‘Consumer Price Index June 2023’ report posted on its website on Monday, indicated that on a year-on-year basis, the headline inflation rate was 4.19% points higher than the rate recorded in the corresponding month of 2022, which stood at 18.60%.
The report also reflected that based on the divisional level in June this year, Food and non-alcoholic beverages which recorded 11.81% rise contributed highest to the inflation, followed by Housing, water, electricity, gas and other fuel with 3.81%, while communication at 0.15% was the least contributor to the month’s inflation rate.
A further analysis of the NBS’ CPI report showed that the uptick in June 2023 year-on-year (Y-o-Y) inflation rate, was largely driven by the food index, as food inflation peaked at 25.25% compared to 24.82% recorded in May 2023.
The statistics agency disclosed that the rise in food inflation Y-o-Y 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.
On a month-on-month basis, it clarified that the Food inflation rate in the month under review was 2.40%, representing 0.21% points higher than the 2.19% recorded in May 2023
Similarly, the Bureau indicated that in the month under review, the “All items less farm produce” or Core inflation increased to 20.27% Y-o-Y from 20.06% in May 2023 and linked the increase in the core index primarily to the petrol subsidy removal by the Federal Government, which spiked the price of petrol increase from an average of N185 per litre to N500 per litre or above, depending on the point of sale.
On a month-on-month basis, the core inflation rate was 1.74% in June 2023. It stood at 1.81% in May 2023, down by 0.07%.
The highest 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 year-on-year basis, the Urban inflation rate in June 2023 was 24.33%, this was 5.23% points higher compared to the 19.09% recorded in June 2022. On a month-on-month basis, the Urban inflation rate was 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.
The Rural inflation rate in 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.
