Nigeria’s Inflation Rate Jumps to 22.41%
Nigeria saw a worsening consumer price inflation in May 2023 following the fuel subsidy crisis, rising to 22.41% from 22.22% in April of the same year, data from the National Bureau of Statistics show.
However, the surge fell below market expectations. Some analysts have projected that the consumer price index will double down going forward due to the immediate impacts of fuel subsidies on household finance.
However, analysts said since the inflation figure is a lag indicator, the impacts of fuel subsidies that trigger more than a 250% increase in the pump price of petrol have not been priced in.
NBS said in the report that Nigeria’s headline inflation sustained its uptrend in May, increasing by 19 basis points to 22.41% year on year. Likewise, on a month-on-month basis, headline inflation rose by 3 basis points to 1.94% from 1.91% in April
Food inflation advanced by 21 basis points to 24.82% year on year from 24.61% in April, 2023. The rise in food inflation was triggered by increased prices of Oil and fat, Yam and other tubers, Bread and cereals, Fish, Potatoes, Fruits, Meat, Vegetables, and Spirits.
On a month-on-month basis, food inflation increased by 2.19%, relative to the 2.13% m/m recorded in the previous month. Elsewhere, the core inflation moderated by 7bps to 20.06% from 20.13%.
Significant pressures were recorded in prices of Gas, Passenger transport by Air, Liquid fuel, Vehicle spare parts, Fuels and lubricants for personal transport equipment, medical services, and Passenger transport by road.
The statistics office reported that the core index increased by 36 basis points to 1.81% m/m in April 2023 compared to the previous month.#Nigeria’s Inflation Rate Jumps to 22.41%
