Nigeria’s Inflation Rate Accelerates to 19.64%

Nigeria’s Inflation Rate Accelerates to 19.64%

Nigeria’s headline inflation accelerates to 19.64% year on year, from 18.60% in June 2022 which analysts consider as the highest point since September 2005 when the consumer price level was 24.32%.

Rising for the sixth consecutive month, the National Bureau of Statistics (NBS) said the upward adjustment was driven by a 105 basis point increase; above the inflation reading for June 2022.

The outturn is two basis points shy of Cordros Capital’s 19.66% estimate for the month and 24 basis points higher than Bloomberg’s median consensus estimate of 19.40%.

On a month-on-month basis, the headline inflation rate was flat at 1.82%. Again, food inflation increased to a 14-month high, rising by 142 basis points to 22.02% from 20.60% last month. READ: U.S Inflation Accelerates Near 40-Year High

Nigeria’s inflation worsened on the back of global disruption and especially insecurity in the Northern parts of the country, resulting to a higher cost of living and lowered standard of living for the people.

During the month, pressures were most significant in the prices of Bread and cereals, Food products, Potatoes, yam and other tubers, meat, fish, oil, and fat. On a month-on-month basis, food inflation increased by 2.04%, relative to the 2.05% month-on-month recorded in the previous month.

Similarly, the core inflation rose by 51 basis points to 16.26% year on year from 15.75 last in June – its highest level since January 2017 when it printed at 17.87%.

Notably, the highest increases were recorded in prices of Gas, Liquid fuel, Solid fuel, Passenger transport by road, Passenger transport by Air, Garments, Cleaning, Repair and Hire of clothing. Compared to the previous month, the core index advanced by 19 basis points to 1.75% month on month in July 2022.

The central bank of Nigeria has often reiterated that inflation pressure was driven by supply chain disruption following covid-19 induced lockdown. However, this has been worsened by on Russia-Ukraine war# Nigeria’s Inflation Rate Accelerates to 19.64%