The persistent upward trend in the prices of goods and services continued in Nigeria, as the inflation rate reached 22.79 per cent in June, marking the sixth consecutive increase this year, according to the latest data released by the Nigeria Bureau of Statistics (NBS).
Headline inflation rose to 22.79 per cent, a 0.38 per cent increase compared to May 2023’s inflation rate of 22.41 per cent. While the June figures exceeded expectations, it reflects the mounting challenges faced by the economy.
Compared to June 2022, the headline inflation rate surged by 4.19 per cent, reaching a significant 18.60 per cent rise. This highlights the substantial year-on-year increase in the inflation rate for June 2023 compared to the same period the previous year.
Food inflation, a major contributor to the overall inflationary pressure, saw a 43 basis point rise to 25.25 per cent from the previous month’s 24.82 per cent. The NBS attributes this increase to elevated costs of oil and fat, bread and cereals, fish, potatoes, yam, fruits, meat, vegetables, milk, cheese, and eggs. On a monthly basis, food inflation rose by 2.4 per cent, exceeding the 2.19 per cent recorded in the preceding month.
Additionally, core inflation, which excludes volatile food prices, increased by 22 basis points to 20.27 per cent from 20.06 per cent in May. Notable price increases were observed in passenger transport by air, gas, vehicle spare parts, liquid fuel, fuels and lubricants for personal transport equipment, medical services, and passenger transport by road, among others.
The urban inflation rate for June 2023 reached 24.33 per cent, surging by 5.23 per cent compared to June 2022’s rate of 19.09 per cent. On a monthly basis, urban inflation rose by 2.31 per cent, a 0.21 per cent increase from May 2023 (2.09%).
The twelve-month average for urban inflation in June 2023 stood at 22.38 per cent, representing a significant 5.30 per cent rise from June 2022’s average of 17.09 per cent.
In rural areas, the inflation rate for June 2023 reached 21.37 per cent on a year-on-year basis, displaying a 3.25 per cent increase from the 18.13 per cent recorded in June 2022. On a monthly basis, rural inflation rose by 1.96 per cent, surpassing May 2023’s 1.80 per cent by 0.16 per cent. The twelve-month average for rural inflation in June 2023 was 20.76 per cent, indicating a substantial 4.75 per cent rise from June 2022’s average of 16.02 per cent.
The persistently high inflation rates pose significant challenges for Nigeria’s economy, affecting the purchasing power of consumers and increasing the cost of living. Policymakers and stakeholders must address these concerns to foster stability and promote economic growth.
