Nigeria's inflation rate increased by 0.38% points to 22.79% in June 2023 from the previous month's figure of 22.41%. This information is courtesy of the National Bureau of Statistics (NBS) most current report on the consumer price index.
The consumer price index (CPI), which gauges how quickly prices for goods and services rise, increased from 22.41% in May 2023 to 22.79% in June 2023. The headline inflation rate was 4.19% points higher on an annual basis than the rate, which was 18.60% in June 2022.
The report by the NBS reads in part, “Looking at the movement, the June 2023 Headline inflation rate showed an increase of 0.38% points when compared to May 2023 headline inflation rate.
On a year-on-year basis, the Headline inflation rate was 4.19% points higher compared to the rate recorded in June 2022, which was 18.60%. This shows that the Headline inflation rate (year-on-year basis) increased in June 2023 when compared to the same month in the preceding year (i.e., June 2022).
On a month-on-month basis, the Headline inflation rate in June 2023 was 2.13%, this was 0.19% points higher than the rate recorded in May 2023 (1.94%). This means that in June 2023, on average, the general price level was 0.19% higher relative to May 2023.”
Based on the divisional level, food, and non-alcoholic drinks were the top contributors to inflation (11.81%). Housing, water, electricity, gas, and other fuels were in second place with 3.81%, while communication ranked last at 0.15%.
The food index, which increased to 25.25% in the review month from 24.82% in May 2023, was a major contributor to the increase in inflation rates.
The price hikes of fish, potatoes, yams, and other tubers, fruits, meat, vegetables, milk, cheese, and eggs contributed to the rise in food inflation on an annual basis. The withdrawal of the federal government's gasoline subsidies, which caused the price of gasoline to rise from an average of N185 per liter to N500 per liter, is what caused the increase in the core index.
Prices for passenger travel by air, gas, auto components, liquid fuel, fuels, and lubricants for personal transport equipment, medical services, passenger transport by road, etc. all had the largest price rises.
After a slight decrease in December 2022, the statistics revealed that Nigeria's inflation has been sustaining an upward trend over the past six months. The NBS reports that this rate is the highest since September 2005. On account of rising food costs, inflation is anticipated to rise higher in the upcoming months, as seen in a report by the Nigerian business news platform, Nairametrics.
Additionally, the effects of the elimination of the gasoline subsidy and the floating of the currency rate are reflected in consumer prices.