Inflation in Nigeria hits 17.71% over rising food prices, others

High cost of food items and fuel are largely responsible for an increase in Nigeria’s inflation in May this year, the National Bureau of Statistics (NBS) puts at 17.7 per cent.

It stated this in its latest report on the Nigeria’s Consumer Price Index (CPI) which measures rate of inflation.

According to the NBS, the new figure was influenced by the increase in the prices of gas, liquid fuel, bread and cereals.

The report said the increase was also recorded in prices of potatoes, yam, and other tubers, wine, fish, Meat, oils and road transport fare.

It stated that the inflation figure was at 0.22 per cent points lower compared to the rate recorded in May 2021, which is 17.93 per cent while on a month-on-month basis, the Headline inflation rate increased to 1.78 per cent in May, a 0.02 per cent rate higher than the rate recorded in April (1.76 per cent).

Composite food index rose to 19.50 percent on a year-on-year basis, a decline of 2.78 percent compared to 22.28 percent in May 2021.

“This rise in the food index was caused by increase in prices of Bread and cereals, food products, potato, yam, and other tubers, wine, fish, meat, and oils.

“On a month-on-month basis, the food sub-index increased to 2.01percent in May 2022, up by 0.01 per cent points from 2.00 percent recorded in April 2022.”

The All items less farm produce or Core inflation, which excludes the prices of volatile agricultural produce stood at 14.90 percent on a year-on-year basis, up by 1.75 percent when compared to 13.15 percent recorded in May 2021.

“On a month-on-month basis, the core sub-index increased to 1.87 percent in May 2022. This is up by 0.65 percent when compared to 1.22 percent recorded in April 2022.”

 

It said the highest increase was recorded in prices of gas, liquid fuel, garment, solid fuel, cleaning, repair and hire of clothing and passenger transport by road.

Similarly, urban inflation rate increased to 18.24 percent (year-on-year) but a 0.27 percent decline compared from 18.51 percent recorded in May 2021.

“On a month-on-month basis, the urban inflation rate rose to 1.81 percent in May 2022, this is a 0.03 percent increase compared to April 2022 (1.78). The corresponding twelve-month average percentage change for the urban index is 17.00 percent in May 2022. This is 0.91 percent higher compared to 16.09 percent reported in May 2021.”

While rural inflation rate increased to 17.21 percent in May 2022 (year-on-year) basis; this is a 0.15 percent decline compared to 17.36 recorded in May 2021.