Nigeria’s headline inflation rate for the month of July 2023 increased to 24.08% from 22.79% recorded in June 2023.
This was contained in the Consumer Price Index report by the National Bureau of Statistics.
According to the NBS, the figure represents a 1.29% percentage points rise from June headline inflation while on year-on-year basis, the inflation rate was 4.44 percentage points higher compared to the rate recorded in July 2022, which was 19.64%.
The report noted that the increase was attributed to an increase in contributions of some items in the basket of goods and services at the divisional level.
“These increases were witnessed in Food & Non-Alcoholic Beverages (12.47%), Housing, Water, Electricity, Gas & Other Fuel (4.03%), Clothing & Footwear (1.84%), Transport (1.57%), Furnishings & Household Equipment & Maintenance (1.21%), Education (0.95%) and Health (0.72%).
“Others are Miscellaneous Goods & Services (0.40%), Restaurants & Hotels (0.29%), Alcoholic Beverages, Tobacco & Kola (0.26%), Recreation & Culture (0.17%) and Communication (0.16%).
“On a month-on-month basis, the Headline inflation rate in July 2023 rose to 2.89%, this shows an average increase of 0.76 percentage points on the general price level relative to June 2023,” it said.
The report also noted that the percentage change in the average Consumer Price Index for the twelve months ending July 2023 over the average of the CPI for the previous twelve months was 21.92%, showing a 5.17% increase compared to the 16.75% recorded in July 2022.
“The food component sub-index for July 2023 increased by 26.98% on a year-on-year basis; this was 4.97% points higher relative to the rate recorded in June 2022 (22.02%).
“The rise in Food index on a year-on-year basis 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 report added.
The further observed that, the Food inflation rate on a month-on-month basis, in July 2023 rose to 3.45%, this was 1.06% points higher compared to the rate recorded in June 2023 (2.40%).
“The average annual rate of Food inflation for the twelve months ending July 2023 over the previous twelve-month average was 24.46%, indicating an increase of 5.71% points from (18.75%) recorded in July 2022.
“Core inflation, which is All items less farm produce, that is excluding the prices of volatile agricultural produce, stood at 20.47% in July 2023 on a year-on-year basis; it rose by 4.41% when compared to the 16.06% recorded in July 2022.
“This was driven by an increase in prices of Passenger Transport by Air, Passenger Transport by Road, Vehicle Spare parts, Medical Services, Maintenance and repair of personal transport equipment etc.
On a month-on-month basis, the Core inflation rate stood at 2.11% in July 2023.
“This shows an increase of 0.34% when compared to the 1.77% recorded in June 2023.
The average annual core inflation rate for the twelve-month ending July 2023 over the previous twelve-month average stood at 18.84%; this was 4.31% points higher than the 14.53% recorded in July 2022.
“The inflation rate in July 2023 for Urban consumers was 25.83% on a year-on-year basis. This indicated an increase of 5.74% points higher compared to the 20.09% recorded in July 2022,” it said.
Also, the Urban month-on-month inflation rate rose to 3.05% in July 2023, which was 0.75% points higher compared to June 2023 (2.31%).
The report said the twelve-month average for the Urban inflation rate ending July 2023 over the corresponding twelve-month was 22.87%. This was 5.59% points higher compared to the 17.29% reported in July 2022.
“Similarly, the inflation rate for rural consumers in the month of July 2023 was 22.49% on a year-on-year basis; this was 3.26% points higher compared to the 19.22% recorded in July 2022.
“On a month-on-month basis, the Rural inflation rate in July 2023 was 2.74%, up by 0.78% points compared to June 2023 (1.96%).
“The twelve months average for the Rural inflation rate ending July 2023 over the corresponding twelve-month was 21.04%. This was 4.79% points higher compared to the 16.25% recorded in July 2022.
“The analyses of the states show that the all-item index for July 2023, on a year-on-year basis was highest in Kogi (28.45%), Lagos (27.30%), Ondo (26.83%); while the states with slowest rise in headline inflation on a year-on-year basis were Borno (20.71%), Jigawa (20.85%) and Sokoto (20.92%) during the month.
“On a month-on-month basis, July 2023 headline inflation recorded the highest increase in Kogi (4.99%), Abia (4.12%), and Akwa Ibom (4.07%). On the other hand, Jigawa (0.16%), Taraba (1.09%) and Yobe (1.10%) recorded the slowest rise on month-on-month inflation.
“State-level analyses of the food index in July 2023, on a year-on-year basis, showed the highest increases in Kogi (34.53%), Lagos (32.52%) and Bayelsa (31.31%). While Jigawa (20.90%), Sokoto (21.63%) and Kebbi (22.45%) recorded the slowest rise in Food inflation during the month.
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