*As food inflation rises to 25.25%
Headline inflation rate rose to 22.79 percent in June relative to May 2023 headline inflation rate which was 22.41 percent, the National Bureau of Statistics (NBS) has said.
In its CPI and Inflation Report June 2023, the Bureau noted that the figure indicates a 0.38 percentage point increase when compared to May 2023 headline inflation rate.
On a year-on-year basis, the Headline inflation rate was 4.19% points higher compared to the rate recorded in June 2022, which was 18.60%.
This shows that the Headline inflation rate (year-on-year basis) increased in June 2023 when compared to the same month in the preceding year (i.e., June 2022).
According to the Statistics Bureau, the headline inflation was driven by food inflation which stood at 25.25 percent year-on-year, higher by 4.65 percent relative to the rate recorded in June 2022 (20.60%).
The rise in Food inflation on a year-on-year basis was caused by increases in prices of Oil and fat, Bread and cereals, Fish, Potatoes, Yam and other tubers, Fruits, Meat, Vegetable, Milk, Cheese, and Eggs.
The removal of fuel subsidy by the Tinubu-led administration led to a transport increase with businesses passing the burden to the final consumers.
On a month-on-month basis, the Food inflation rate in June 2023 was 2.40%, this was 0.21% points higher compared to the rate recorded in May 2023 (2.19%).
The average annual rate of food inflation for the twelve months ending June 2023 over the previous twelve-month average was 24.03%, this was a 5.41% points increase from the average annual rate of change recorded in June 2022 (18.62%).
The NBS stated that Core inflation stood at 20.27 percent in the month under review. On a year-on-year basis, the rates were up by 4.53 percent when compared to the 15.75 percent recorded in June 2022.
NBS said: “The highest increases were recorded in prices of Passenger Transport by Air, Gas, Vehicles, Spare Parts, Liquid Fuel, Fuels and Lubricants for Personal Transport Equipment, Medical Services, passenger transport by Road, etc.
“On a month-on-month basis, the Core Inflation rate was 1.74% in June 2023. It stood at 1.81% in May 2023, down by 0.07%. The average twelve months annual inflation rate was 18.71% for the twelve months ending June 2023; this was 4.65% points higher than the 14.06% recorded in June 2022,” the report said.
“On a year-on-year basis food inflation in the month of June was highest in Kwara (30.80%), Lagos (30.37%), and Kogi (29.71%), while Zamfara (21.38%), Sokoto (21.60%) and Borno (21.75%) recorded the slowest rise in Food inflation on a year-on-year basis.
“On a month-on-month basis, however, June 2023 Food inflation was highest in Kwara (3.82%), Abuja (3.64%), and Ogun (3.56%), while Rivers (0.75%), Zamfara (1.33%) and Adamawa (1.47%) recorded the slowest rise in Food inflation on a month-on-month basis.”
