Nigeria’s inflation rate has risen 22.41% for the fifth consecutive increase in 2023.
This is according to the recently released Consumer Price Index (CPI) report by the National Bureau of Statistics (NBS).
The inflation rate in Nigeria rose for the fifth time in a row in May, after the rate declined to 21.34% in May 2022.
Inflation continues to rage at an over 17-year high despite contractionary monetary policies by the Central Bank of Nigeria (CBN).
On a month-on-month basis, the headline inflation rate in May 2023 was 1.94%, which was 0.03% higher than the rate recorded in April 2023 (1.91%). This means that in May 2023, on average, the general price level was 0.03% higher relative to April 2023.
Food and non-alcoholic beverages (11.61%) contributed the most to the rise in the inflationary pressure, followed by housing water, electricity, gas and other fuel (3.75%), and clothing and footwear (1.71%).
The Food inflation rate rose to 24.82% in May 2023, representing a 0.21% point increase from 24.61% recorded in the previous month and 5.3% points higher than 19.5% recorded in the corresponding period of 2022.
On a month-on-month basis, the Food inflation rate in May 2023 was 2.19%, this was 0.06% higher compared to the rate recorded in April 2023 (2.13%).
The average annual rate of Food inflation for the twelve-months ending May 2023 over the previous twelvemonth average was 23.65%.
The rise in food inflation on a year-on-year basis was caused by increases in prices of Oil and fat, Yam and other tubers, Bread and cereals, Fish, Potatoes, Fruits, Meat, Vegetable, and Spirits.
The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 20.06% in May 2023 on a year-on-year basis; up by 5.16% when compared to the 14.90% recorded in May 2022.
On a month-on-month basis, the Core inflation rate was 1.81% in May 2023. It stood at 1.46% in April 2023, up by 0.35%.
The average twelve-month annual inflation rate was 18.33% for the twelve months ending May 2023.
The highest increases were recorded in gas prices, passenger transport by air, Liquid fuel, vehicle spare parts, fuels, and lubricants for personal transport equipment, medical services, and passenger transport by road.
Inflation has remained high in Africa’s largest economy, prompting the apex bank to hike interest rates to their highest levels in nearly two decades.
In an aggressive push to contain the nation’s inflationary pressure, the Central Bank of Nigeria, in May, raised its benchmark lending rate to 18.5 per cent.
Meanwhile, inflation is expected to continue its upward trend through the year, following the announcement of the removal of petrol subsidies and the adjustment of the FX rate at the official market.