Prices of food, others drive inflation to 17-year high

Nigeria’s headline inflation has increased to 19.64 per cent in July, bringing the country’s inflation figure to the highest recorded since 2005, the National Bureau of Statistics (NBS) has disclosed.

In a report it released Monday, the NBS said the figure was 2.27 per cent higher compared to 17.38 per cent recorded in July 2021.

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On a month-on-month basis, it said the headline inflation rate in July 2022 was 1.817 per cent, which was 0.001 per cent higher than 1.816 per cent recorded in June 2022.

It said food inflation rose to 22.02 per cent on a year-on-year basis; which was 0.99 per cent higher compared to the rate (21.03 per cent) recorded in July 2021.

“This rise in food inflation was caused by increases in prices of bread and cereals, food products, potatoes, yam and other tubers, meat, fish, oil, and fat,” the report said.

It however said there was a 0.01% decline in food inflation when compared to June due to reduction in prices of some food items like “tubers, maize, garri, and vegetables.”

“For all items less farm produce’, it rose to 16.26% on a year-on-year basis, “up by 2.54% when compared to 13.72% recorded in July 2021. On a month-on-month basis, the core inflation rate was 1.75% in July 2022,” the report added.

It said the highest increases recorded in the category includes, prices of gas, liquid fuel, solid fuel, passenger transport by road, passenger transport by air, garments, cleaning, repair and hire of clothing.

Meanwhile, urban inflation rate was 20.09 per cent, a 2.08 per cent higher compared to 18.01 per cent recorded in July 2021.

It further stated, “On a month-on-month basis, the urban inflation rate was 1.82% in July 2022, this was a 0.0002% decline compared to June 2022 (1.82%). The corresponding twelve-month average for the urban inflation rate was 17.29 % in July 2022. This was 0.40% higher compared to 16.89% reported in July 2021.

“The rural inflation rate in July 2022 was 19.22% on a year-on-year basis; this was 2.47% higher compared to the 16.75% recorded in July 2021. On a month-on-month basis, the rural inflation rate in July 2022 was 1.811%, up by 0.002% compared to June 2022 (1.809%). The corresponding twelve-month average for the rural inflation rate in July 2022 was 16.25%. This was 0.52% higher compared to 15.73% recorded in July 2021.”