Nigeria’s inflation rate hits 18.6% in June- NBS

Nigeria’s inflation rate in the month of June 2022, surged further to 18.6% compared to 17.71% recorded in the previous month. This is according to the recently released CPI report for the month of June 2022, by the National Bureau of Statistics (NBS).

Nigeria’s inflation rate climbed to its highest level in 65 months (over 5 years), and the fifth consecutive monthly rise. The last time the inflation rate in Nigeria touched the 18.6% ceiling was January 2017, when it stood at 18.72%.

On a month-on-month basis, the inflation rate increased to 1.82% in June 2022, this is 0.03% higher than the rate recorded in May 2022 (1.78%). Also, the urban inflation rate increased to 19.09% (year-on-year); this is 0.74% points higher than the 18.35% recorded in June 2021, while the rural inflation rate increased to 18.13% in June 2022 from 17.16% recorded in the corresponding period of 2021.

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In June 2022, all items inflation on a year-on-year basis was highest in Bauchi (21.99%), Kogi (21.37%), Ebonyi (20.73%) while Adamawa (16.14%), Sokoto (16.31%) and Jigawa (16.37%) recorded the slowest rise in headline Year-on-Year inflation.

In terms of food inflation. Kwara State had the highest rise at 25.62%, Kogi (24.81%), and Rivers (24.34%), while Jigawa (16.01%), Sokoto (16.24%) and Kaduna (17.75%) recorded the slowest rise in year-on-year food inflation.

Nigeria’s inflation rate has surged to its highest level in over 5 years, largely as a result of the hike in energy and food prices. There was scarcity of petrol in most cities in the country in the review month, leading to a significant rise in transportation costs across the country.

The uptrend in the inflation rate means that the purchasing power of Nigerians has been further eroded, meaning that for example, one’s N5,000 will not buy the same quantity as it did in the previous month.

This is further exacerbated by the constant depreciating value of the naira, already trading over N620/$1 at the parallel market and N425/$1 at the official window.

Nairametrics