Nigeria’s Inflation Rate Spikes to 18.6%

Nigeria’s Inflation Rate Spikes to 18.6%

Nigeria’s headline inflation rate inched upward by 89 basis points to 18.60% year on year in June, from 17.71% in May 2022, according to data released by the National Bureau of Statistics – NBS- today.

This happens to be the highest point since January 2017 when the price level printed at18.72%, driven by disruption in the supply chain. Food inflation increased to an 11-month high, rising by 110bps to 20.60% from 19.50% in May.

The pressure was most significant in the prices of Bread and cereals, Food products, Potatoes, yam, and other tubers, Meat, Fish, Oil and fat, and Wine. On a month-on-month basis, food inflation increased by 2.05%, relative to the 2.01% m/m recorded in the previous month.

Similarly, the core inflation rose by 85 basis points to 15.75% year on year versus 14.90% in May – its highest level since February 2017 when it printed at 16.01%. READ: Yield on T-Bills Spikes, Bond Slides Small as Naira Falls

The highest increases were recorded in prices of Gas, Liquid fuel, Solid fuel, Garments, Passenger transport by road, Cleaning, Repair and Hire of clothing, and Passenger travel by Air. Compared to the previous month, the core index moderated by 31bps to 1.56% m/m in June 2022.

Nigeria’s Inflation Rate Spikes to 18.6%