NBS says Nigeria’s inflation rate rises to 19.64% in July 2022

By Linda Ike

The National Bureau of Statistics (NBS), has disclosed that Nigeria’s inflation rate increased to 19.64 percent on a yearly basis in July.

The Statistician-General of the Federation and Chief Executive Officer of NBS, Semiu Adeniran stated this in the Consumer Price Index (CPI) for July 2022 released by the bureau on Monday in Abuja.

Adeniran who gave a breakdown of the report in a statement said the CPI measures the average change over time in the prices of goods and services consumed by people daily.

He further said it is a core macroeconomic indicator used in the derivation of the inflation rate for policy, planning, and monitoring of an economy.

“This is 2.27 percent points higher compared to the rate recorded in July 2021, which was 17.38 per cent.
“This shows that the headline inflation rate increased in July 2022 when compared to the same month in the previous year of July 2021.

“This means that in July 2022, the general price level was 2.26 per cent higher than in July 2021.’’
He said increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index.
Adeniran said the increase in inflation was caused by an increase in food index attributed to the disruption in the supply of food products.

The statistician-general also said the increase in inflation was caused by an increase in the cost of transportation arising from the higher cost of energy.
According to him, the increase in the inflation rate was also due to an increase in import costs as a result of currency depreciation, as well as a general increase in the cost of production.
He said on a month-on-month basis, the headline inflation rate in July 2022 was 1.817 per cent, which was higher than the rate recorded in June 2022 at 1.816 percent.

“The percentage change in the average CPI for the twelve months ending July 2022 over the average of the CPI for the previous twelve months period was 16.75 per cent.

“This is showing a 0.46 per cent increase compared to 16.30 per cent recorded in July 2021.’’

Adeniran said the composite food index on a year-on-year basis was 22.02 percent in July 2022, showing a rise compared to 21.03 per cent in July 2021.
He said the rise in the food index was caused by increases in prices of Bread and cereals, Food products, potatoes, yam, and other tubers, meat, fish, oil, and fat.

The statistician-general said on a month-on-month basis, the food sub-index in July 2022 was 2.04 percent lower than the 2.05 percent recorded in June 2022.

“The index for all items less farm produce (Core inflation), which excludes the prices of volatile agricultural produce stood at 16.26 per cent in July 2022 on a year-on-year basis.

“This was higher when compared to 13.72 per cent recorded in July 2021. On a month-on-month basis, the core sub-index was 1.75 per cent in July 2022 higher when compared to 1.56 per cent recorded in June 2022.

He said the highest increases were recorded in prices of gas, liquid fuel, solid fuel, passenger transport by road, passenger transport by air, garments, cleaning, repair and hire of clothing.
Adeniran said on a year-on-year basis, in July 2022, the urban inflation rate was 20.09 per cent, 2.08 per cent higher compared to 18.01 per cent recorded in July 2021.

He said on a month-on-month basis the urban inflation rate was 1.82 per cent in July 2022, showing a decline compared to June 2022 at 1.82 per cent.
Adeniran said the rural inflation rate in July 2022 was 19.22 per cent on a year-on-year basis, which were 2.47 per cent higher compared to the 16.75 per cent recorded in July 2021.

“On a month-on-month basis, the rural inflation rate in July 2022 was 1.811 per cent, which was higher compared to June 2022 at 1.809 per cent.’’
Adeniran said all Items Inflation for the states in July 2022 on a year-on-year basis was highest in Akwa Ibom with 22.88 per cent, followed by Ebonyi with 22.51 per cent, and Kogi with 22.08 per cent.
The statistician-general said the slowest rise was recorded in Jigawa with 16.62 per cent, followed by Kaduna State with 17.04 per cent and Borno with 18.04 percent.

Adeniran said on a month-on-month basis, July 2022 recorded the highest increase in Adamawa with 2.87 per cent, followed by Abuja with 2.84 per cent, and Oyo State with 2.77 percent.

“While Bauchi recorded the slowest rise on month-on-month inflation with 0.82 per cent, followed by Kano State with 0.83 per cent and Niger State with 1.03 percent.’’

He said Food Sub-index Inflation for the states in July 2022 on a year-on-year basis was highest in Kwara with 29.28 per cent, followed by Akwa Ibom with 27.22 per cent, and Kogi with 26.08 percent.

He disclosed that Kaduna State recorded the slowest rise in food inflation annually with 17.16 percent, followed by Jigawa with 17.46 percent and Anambra with 19.25 percent.

According to the report, Taraba, Gombe, and Niger recorded the slowest rise on a monthly inflation with 0.14 percent, 0.94 percent, and 1.13 per cent respectively.

Adeniran added that on a monthly basis, the food inflation sub-index was highest in Kwara with 3.90 percent, followed by Delta with 3.61 percent, and Benue with 2.94 percent.