Breaking: Nigeria’s Inflation hits 22.78% in June – According to NBS

In a concerning economic development, Nigeria’s headline inflation rate surged to 22.79% in June 2023, marking a 0.38% increase from May’s rate of 22.41%. The year-on-year comparison revealed an alarming 4.19% points rise compared to June 2022’s inflation rate of 18.60%.

Nigeria’s headline inflation rate surged to 22.79% in June 2023, marking a 0.38% increase from May’s rate of 22.41%.

NBS

The data showed that the soaring inflation was primarily driven by the Food & Non-Alcoholic Beverages sector, which contributed a significant 11.81% to the overall increase. Other notable contributors were Housing, Water, Electricity, Gas & Other Fuel (3.81%), Clothing & Footwear (1.74%), and Transportation (1.48%).

Furthermore, on a month-on-month basis, the headline inflation rate in June 2023 rose by 2.13%, indicating a 0.19% point increase from May 2023’s rate of 1.94%. This implied that, on average, the general price level was 0.19% higher in June compared to the previous month.

Urban inflation also experienced a surge, reaching 24.33% on a year-on-year basis, while rural inflation reached 21.37% during the same period. The Food inflation rate stood at 25.25% year-on-year, mainly driven by increases in the prices of essential commodities such as Oil and Fat, Bread and Cereals, Fish, and Fruits.

Core inflation, which excludes volatile agricultural produce, recorded a year-on-year rate of 20.27%, indicating a significant 4.53% increase compared to June 2022.

Core inflation, which excludes volatile agricultural produce, recorded a year-on-year rate of 20.27%, indicating a significant 4.53% increase compared to June 2022.

NBS

The Nigerian economy is facing mounting challenges due to these alarming inflation rates, impacting the cost of living for citizens and the overall purchasing power. The government and relevant authorities must take decisive measures to curb inflation and ensure stability in the economy. Measures to address food supply chain disruptions, enhance agricultural production, and promote prudent fiscal and monetary policies will be crucial in taming the inflationary pressures and restoring economic equilibrium.

As the situation unfolds, close monitoring of price movements and careful policy adjustments will be essential to navigate this challenging economic landscape and protect the welfare of Nigerians.