Economy - August 16, 2023

Nigeria’s inflation jumps by 1.29% to 24.08% in July 2023

Concise Daily August 16, 2023

0 6 min read

The National Bureau of Statistics (NBS) said Nigeria’s headline inflation rate increased to 24.08 per cent in July 2023, a 1.29 per cent points higher compared to the 22.79 per cent recorded in June.

NBS disclosed in its Consumer Price Index (CPI) and Inflation Report for July , which was released in Abuja on Tuesday said on a year-on-year basis, the headline inflation rate in July was 4.44 per cent higher than the rate recorded in July 2022 at 19.64 per cent.

It added:”This shows that the headline inflation rate (year-on-year basis) increased in July 2023 when compared to the same period in July 2022.”

The report said that the contributions of items on the divisional level to the increase in the headline index were food and non-alcoholic beverages at 12.47 per cent and housing, water, electricity, gas and other fuel at 4.03 per cent.

Others were; clothing and footwear at 1.84 per cent; transport at 1.57 per cent; furnishings, household equipment and maintenance at 1.21 per cent and education at 0.97 per cent, and health at 0.72 per cent.

The report said: “Miscellaneous goods and services at 0.40 per cent; restaurant and hotels at 0.29 per cent; alcoholic beverage, tobacco and kola nut at 0.26 per cent; recreation and culture at 0.17 per cent, and communication at 0.16 per cent.”

In addition, the report said , on a month-on-month basis, the headline inflation rate in July 2023 was 2.89 per cent, which was 0.76 per cent higher than the rate recorded in June 2023 at 2.13 per cent.

It added: ” This means that in July 2023, on average, the general price level was 0.76 per cent higher relative to June 2023.”

It said the percentage change in the average CPI for the 12 months ending July 2023 over the average of the CPI for the previous 12 months period was 21.92 per cent.

The report added: “This indicates a 5.17 per cent increase compared to 16.75 per cent recorded in July 2022.”

It said that the food inflation rate in July was 26.98 per cent on a year-on-year basis, which was 4.97 per cent higher compared to the rate recorded in July 2022 at 22. 02 per cent.

The report said: “The rise in food inflation is caused by increases in prices of oil and fats, bread and cereals, fish, potatoes, yams and other tubers, fruits, meat, vegetable, milk, cheese and eggs. ”

It said on a month-on-month basis, the food inflation rate in July was 3.45 per cent, which was a 1.06 per cent rise compared to the rate recorded in June at 2.40 per cent.

It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Borno at 20.71 per cent, followed by Jigawa at 20.85 per cent, and Sokoto at 20.92 per cent.

The report, however, said in July 2023, all items inflation rate on a month-on-month basis was highest in Kogi at 4.99 per cent, Abia at 4.12 per cent, and Akwa Ibom at 4.07 per cent.

It added: “Jigawa at 0.16 per cent, followed by Taraba at 1.09 per cent and Yobe at 1.10 per cent recorded the slowest rise in month-on-month inflation.”

The report said food inflation in June, on a year-on-year basis, was highest in Kogi at 34.53 per cent, followed by Lagos at 32.52 per cent, and Bayelsa at 31.31 per cent.

It added: “Jigawa at 20.90 per cent, followed by Sokoto at 21.63 per cent and Kebbi at 22.45 per cent recorded the slowest rise in food inflation on a year-on-year basis.’’

The report, however, said on a month-on-month basis, in July, food inflation was highest in Kogi at 6.73 per cent, followed by Akwa Ibom at 5.64 per cent and Bayelsa at 4.59 per cent.

It said: “With Taraba at -0.21per cent, followed by Jigawa at 0.28 per cent and Yobe at 0.90 per cent recorded the slowest rise on month-on-month food inflation.’’