The National Bureau of Statistics (NBS) has reported that Nigeria’s headline inflation rate rose to 22.79% in June 2023. This represents a 0.38% increase from the 22.41% recorded in May.
In the June Consumer Price Index (CPI) and Inflation Report released in Abuja on Monday, the NBS said on a year-on-year basis, the June inflation rate was 4.19% higher than the rate in June 2022, which was at 18.6%.
On a year-on-year basis, the headline inflation rate in June 2023 was 4.19 percent higher than the rate recorded in June 2022, which stood at 18.6 percent.
The report highlighted the major contributors to the increase in the headline index, with food and non-alcoholic beverages accounting for 11.81 percent and housing, water, electricity, gas, and other fuel contributing 3.81 percent.
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Other factors included clothing and footwear at 1.74 percent, transport at 1.48 percent, furnishings, household equipment, and maintenance at 1.15 percent, education at 0.9 percent, and health at 0.68 percent.
Moreover, the report indicated that the average CPI for the 12 months ending in June 2023 was 21.54 percent, representing a 5.00 percent increase compared to the previous year’s 16.54 percent recorded in June 2022.
In terms of food inflation, the rate for June 2023 on a year-on-year basis was 25.25 percent, marking a 4.65 percent rise compared to June 2022’s rate of 20.6 percent. On a month-on-month basis, food inflation in June 2023 reached 2.4 percent, reflecting a 0.21 percent increase compared to May’s rate of 2.19 percent.
The report indicated significant increases in the prices of various goods and services, such as passenger transport by air and road, gas, vehicle spare parts, liquid fuel, fuels, and lubricants for personal transport equipment, and medical services in June 2023.
On a month-on-month basis, the core inflation rate for June 2023 was 1.74 percent.
Regarding urban inflation, the rate in June 2023 was 24.33 percent on a year-on-year basis, representing a 5.23 percent increase from June 2022’s rate of 19.09 percent. Similarly, the rural inflation rate for June 2023 was 21.37 percent, which was 3.25 percent higher than the rate recorded in June 2022 at 18.13 percent.
An analysis of states’ profiles revealed that Lagos had the highest year-on-year inflation rate at 25.75 percent in June, followed by Ondo at 25.4 percent and Kogi at 25.23 percent. This indicated a considerable increase in the prices of goods and services in Lagos State compared to the same period last year. Additionally, Lagos recorded the highest month-on-month inflation rate at 2.7% in June, signaling a faster pace of price changes compared to other states.
The main driver of this surge was the removal of fuel subsidies by the federal government, leading to a significant rise in the pump price of petrol in Lagos. On the other hand, Borno recorded the slowest rise in headline inflation on a year-on-year basis at 20.4 percent, followed by Zamfara at 20.93 percent, and Ekiti at 21.06 percent.
In terms of the month-on-month inflation rate for all items in June 2023, Ogun had the highest rate at 3.21 percent, followed by Plateau at 3.05 percent, and Jigawa at 3 percent. On the contrary, Zamfara had the slowest rise at 1.40 percent, followed by Delta at 1.42 percent, and Rivers at 1.54 percent.
Regarding food inflation, Lagos had the highest year-on-year rate at 30.37 percent in June, followed by Kwara at 30.8 percent, and Kogi at 29.71 percent. In contrast, Zamfara had the slowest rise in food inflation at 21.38 percent, followed by Sokoto at 21.60 percent, and Borno at 21.75 percent.
On a month-on-month basis for food inflation in June, Kwara had the highest rate at 3.82 percent, followed by Abuja at 3.64 percent, and Ogun at 3.56 percent. Rivers had the lowest increase at 0.75 percent, followed by Zamfara at 1.33 percent, and Adamawa at 1.47 percent.
The NBS said the June Consumer Price Index (CPI) numbers may not fully capture the impact of the fuel subsidy removal and the unification of the exchange rate.