Nigeria’s Consumer Price Index (CPI) increased to 22.79 percent in June 2023 from 22.41 percent in the previous month, according to new data from the National Bureau of Statistics (NBS). The NBS states that the June inflation rate showed an increase of 0.38 percent when compared to May 2023 inflation rate.
The CPI measures the rate of change in prices of goods and services for a given period of time.
It should be recalled that in June, the federal government removed subsidy on petroleum production, leading to a rise in the pump price of premium motor spirit, popularly known as petrol.
On a year-on-year basis, the CPI inflation rate was 4.19 percent points higher compared to the rate recorded in June 2022, which was 18.60 percent. This means that the CPI inflation rate increased in June 2023 when compared to June, 2022.
Also, on a month-on-month basis, the CPI inflation rate in June 2023 was 2.13 percent, which was 0.19 percent points higher than the rate recorded in May 2023 (1.94 percent). This means that in June 2023, on average, the general price level was 0.19 percent higher relative to May 2023.
According to the report, the percentage change in the average CPI for the twelve months period ending June 2023 over the average of the CPI for the previous twelve months period was 21.54 percent, showing a 5.00 percent increase compared to 16.54% recorded in June 2022.
The urban inflation rate in June 2023, on a year-on-year basis, was 24.33 percent, which was 5.23 percent points higher when compared to the 19.09 percent recorded in June 2022 while on a month-on-month basis, the urban inflation rate was 2.31 percent in June 2023, which was 0.21 percent points higher in contrast to May 2023 (2.09 percent). The corresponding 12-month average for the urban inflation rate was 22.38 percent in June 2023. This was 5.30 percent points higher compared to the 17.09 percent reported in June 2022.
Similarly, the rural inflation rate in June 2023 was 21.37 percent on a year-on-year basis. This was 3.25 percent points higher compared to the 18.13 percent recorded in June 2022 and a month-on-month basis, the rural inflation rate in June 2023 was 1.96 percent, up by 0.16 percent points compared to May 2023 (1.80 percent). The corresponding 12 months average for the rural inflation rate in June 2023 was 20.76 percent. This was 4.75 percent points higher compared to the 16.02 percent recorded in June 2022.
The food inflation rate in June 2023 was 25.25 percent on a year-on-year basis, which was 4.65 percent points higher when compared to the rate recorded in June 2022 (20.60 percent). The increase in food inflation on a year-on-year basis 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.
On a month-on-month basis, food inflation rate in June 2023 was 2.40 percent, which was 0.21 percent points higher compared to the rate (2.19 percent) recorded in May 2023. The average annual rate of food inflation for the twelve months ending June 2023 over the previous 12-month average was 24.03 percent, this was 5.41 percent points increase from the average annual rate of change (18.62 percent) recorded in June 2022.
In June 2023, all items inflation rate on a year-on-year basis was highest in Lagos (25.75 percent), Ondo (25.40 percent), Kogi (25.23 percent), while Borno (20.44 percent), Zamfara (20.93 percent) and Ekiti (21.06 percent) recorded the slowest rise in CPI inflation on a year-on-year basis.
On a month-on-month basis, however, June 2023 recorded the highest increases in Ogun (3.21 percent), Plateau (3.05 percent), Jigawa (3.00 percent), while Zamfara (1.40 percent), Delta (1.42 percent) and Rivers (1.54 percent) recorded the slowest rise on month-on-month basis.
The NBS added that Kwara (30.80 percent), Lagos (30.37 percent) and Kogi (29.71 percent) states are the top three states with the highest inflation rates on a year-on-year basis. On the other hand, Zamfara (21.28 percent), Sokoto (21.60 percent) and Borno (21.75 percent) are the top three states with the slowest inflation rate on a year-on-year basis.
Also, on the month-on- month basis, Kwara, FCT and Ogun states top the list as the states with the highest inflation rates of 3.82 percent, 3.64 percent and 3.56 percent while Rivers, Zamfara and Adamawa states recorded the slowest inflation rates of 0.75 percent, 1.33 percent and 1.47 percent, respectively.
