THE latest data from the Nigerian Bureau of Statistics (NBS) has shown that Nigeria’s inflation rate increased by 0.38 per cent to 22.79 per cent in June 2023.
This is the sixth consecutive increase in 2023 but the highest increase when compared month by month in the year.
Also, this is the first inflation figure announced after President Bola Tinubu assumed power on May 29. The increase might not be unconnected to several economic policies implemented since the new President assumed power.
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Some of these policies include the removal of fuel subsidy, devaluation of the naira in the exchange rate market and several controversies across tax and household electricity tariffs.
According to the NBS, the inflation rate increased from 22.41 per cent in May 2022.
“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 (June 2022),” the NBS said.
However, the urban inflation rate in June 2023 was 24.33 per cent while the rural inflation rate was at 21.37 per cent.
The ICIR reported how some policies introduced by the Federal Government affected commuters, and bolt drivers, and might push more Nigerians into poverty. The ICIR also reported how some of these unsettling policies might increase the inflation rate in June and July with a prediction of 22.5 per cent.
Food inflation
Meanwhile, NBS data also showed that food inflation rose to 25.25 per cent. This is 4.65 per cent higher than the 20.60 per cent recorded in June 2022.
The rise in food inflation 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 NBS said, “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%).”
In June 2023, the inflation rate, on a year-on-year basis, was highest in Lagos (25.75%), Ondo (25.40%), Kogi (25.23%), while Borno (20.44%), Zamfara (20.93%) and Ekiti (21.06%) recorded the slowest rise.
Kehinde Ogunyale tells stories by using data to hold the government into account. Shoot him a mail at [email protected] or Twitter: Prof_KennyJames
