Food, Urban Inflation Drives CPI For 6th Successive Month To 22.79% In June

Nigeria's National Bureau of Statistics (NBS), on Monday, reported that Consumer Price Index for the month of June continued northward propelled by food and urban inflation- the sixth consecutive rise.

According to the report, headline inflation closed the month at 22.79 percent from 22.41 percent a month earlier, after urban inflation jumped 5.23 percent to 24.33 percent; and food inflation closed the period at 25.25 percent, a 4.65 percent growth from the level in May.

The sharp increase in food and urban inflation is blamed on the sudden removal of subsidy on Premium Motor Spirit (Petrol) by President Bola Tinubu in his inaugural address on May 29, the initial impact of which has been the sharp increase in the prices of food and transportation cost, in what Daily Independent analysts believe could drive food inflation in the medium to long term to 30 percent region around November, leading to the yuletide.

The food inflation rate in June 2023, according to the NBS report, "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.

"The average annual rate of Food inflation for the twelve months ending June 2023 over the previous twelve-month average was 24.03%, this was a 5.41%-point-increase from the average annual rate of change recorded in June 2022 (18.62%)," it added.

The headline inflation for June represented a 0.38 percent increase, when compared to May 2023 headline inflation rate, while on a year-on-year basis, up by 4.19% from the 18.60% rate in June 2022.

Month-on-month basis, the Headline inflation rate in June 2023 was 2.13%, this was 0.19% points higher than 1.94 percent in June 2023 the rate recorded in May 2023, while the percentage change in the average CPI for the 12 months period ending June 2023, was 21.54%, showing a 5.00% increase compared to 16.54% recorded in the same period of last year.

The rural inflation rate for the period stood at 21.37% on a year-on-year basis; a 3.25% growth from 18.13% recorded in June 2022.

Core inflation (All items less farm produce), which excludes the prices of volatile agricultural produce stood at 20.27% in June 2023 on a year-on-year basis, up by 4.53% from the 15.75% recorded in June 2022, driven by increases in prices of passenger transport by air, gas, vehicles spare parts, liquid fuel, fuels and lubricants for personal transport equipment, medical services, and passenger transport by road, among others.

A breakdown of the data showed that headline inflation year-on-year was at its peak in Lagos where it stood at 25.75%; followed by Ondo, 25.40%; and Kogi, 25.23%; while Borno recorded the slowest rise of 20.44%; followed by Zamfara's 20.93%; and Ekiti, 21.06% on a year-on-year basis.

Food inflation for the period was highest in Kwara, 30.80%; Lagos, 30.37%; and Kogi, 29.71%; while Zamfara recorded the slowest rise with 21.38%; Sokoto, 21.60%; and Borno, 21.75% YTD.