The Consumer Price Index which measures inflation rose to 18.60 per cent year-on-year in June, 2022, up from 17.71 per cent recorded in May, the National Bureau of Statistics (NBS) disclosed on Friday in its inflation report.
It also said that on a month-on-month basis, the urban inflation rate rose to 1.82 per cent in June 2022, this is a 0.01 per cent increase compared to May 2022 (1.81 per cent)
“in the month of June 2022, the urban inflation rate increased to 19.09 per cent (year-on-year); this is a 0.74 per cent increase compared to 18.35 per cent recorded in June 2021.
“On a month-on-month basis, the headline inflation rate increased to 1.82 per cent in June 2022, this is 0.03 per cent higher than the rate recorded in May 2022 (1.78 per cent)”, it read.
Also, food inflation, which is closely watched index rose to 20.60 per cent in June 2022 from 19.5 per cent recorded in May 2022.
According to the report, the rise in the food index was caused by increases in prices of Bread and cereals, Food products, Potatoes, yam, and other tubers, Meat, Fish, Oil and fat, and Wine.
“This rise in the food index was caused by increases in prices of bread and cereals, food products, potatoes, yam, and other tubers, meat, fish, oil and fat, and wine” NBS said.
The Central Bank of Nigeria had in the last Monetary Policy Committee meeting held in May increased the benchmark lending rate by 150 basis points to 13 per cent, a move believed to moderate the growing inflation.
Globally, inflation has been on the rise and is causing concerns for major economies like the United States.
Bismarck Rewane, the Managing Director of Financial Derivatives Company had placed the country’s “inflation at 44.51 per cent” if the NBS reconstructs the calculation based on reality.
“The weights of the components in the basket for evaluating the periodic Consumer Price Index (CPI) ought to be reviewed every five years to reflect the changing households’ consumption patterns especially in the face of COVID 19 which altered spending patterns as well as Nigeria’s changing demographics,” said Rewane.
NBS said in the latest report that rural inflation rate increased to 18.13 per cent in June 2022 (year-on-year) basis, while urban inflation rose to 19.09 per cent.
Food inflation on a year-on-year basis was highest in Kwara (25.62 per cent), Kogi (24.81 per cent), and Rivers (24.34 per cent), while Jigawa (16.01 per cent), Sokoto (16.24 per cent) and Kaduna (17.75 per cent) recorded the slowest rise in year-on-year food inflation.
“All items inflation on a year-on-year basis was highest in Bauchi (21.99 per cent), Kogi (21.37 per cent), Ebonyi (20.73 per cent) while Adamawa (16.14 per cent), Sokoto (16.31 per cent) and Jigawa (16.37 per cent) recorded the slowest rise in headline Year-on-Year inflation”, said NBS.