MON, 15 AUG, 2022-theGBJournal| Nigeria’s headline inflation rose by 105bps in July to 19.64% y/y (June: 18.60% y/y) – the highest print since September 2005 (24.32% y/y), according to National Bureau of Statistics (NBS) report published today on Consumer Price Index
The outturn is 2bps shy of Cordros’ estimate (19.66% y/y) and 24bps higher than Bloomberg’s median consensus estimate (19.40% y/y). On a month-on-month basis, headline inflation was flat at 1.82%.
Food inflation also rose to a 14-month high, rising by 142bps to 22.02% y/y (June: 20.60% y/y). Pressures were most significant in the prices of Bread and cereals, Food products, Potatoes, yam and other tubers, meat, fish, oil, and fat. On a month-on-month basis, food inflation increased by 2.04%, relative to the 2.05% m/m recorded in the previous month.
Similarly, the core inflation rose by 51bps to 16.26% y/y (June: 15.75 y/y) – its highest level since January 2017 (17.87% y/y).
Notably, 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. Compared to the previous month, the core index advanced by 19bps to 1.75% m/m in July 2022.
On State profile, the report shows that In July 2022, all items’ inflation rate on a year-on-year basis was highest in Akwa Ibom (22.88%), Ebonyi (22.51%), Kogi (22.08%), while Jigawa (16.62%), Kaduna (17.04%) and Borno (18.04%) recorded the slowest rise in headline Year-on-Year inflation.
However, on a month-on-month basis, July 2022 recorded the highest increases in Adamawa (2.87%), Abuja (2.84%), Oyo (2.77%), while Bauchi (0.82%), Kano (0.83%) and Niger (1.03%) recorded the slowest rise on month-on-month inflation.
In July 2022, food inflation on a year-on-year basis was highest in Kwara (29.28%), Akwa Ibom (27.22%), and Kogi (26.08%), while Kaduna (17.16%), Jigawa (17.46%) and Anambra (19.25%) recorded the slowest rise on year-on-year food inflation.
On a month-on-month basis, July 2022 food inflation was highest in Kwara (3.90%), Delta (3.61%), and Benue (2.94%), while Taraba (0.14%), Gombe (0.94%), and Niger (1.13%) recorded the slowest rise on month-on-month inflation.
Meanwhile, on a year-on-year basis, in the month of July 2022, the urban inflation rate was 20.09%, this was 2.08% higher compared to 18.01% recorded in July 2021. On a month-on-month basis, the urban inflation rate was 1.82% in July 2022, this was a 0.0002% decline compared to June 2022 (1.82%). The corresponding twelve-month average for the urban inflation rate was 17.29 % in July 2022. This was 0.40% higher compared to 16.89% reported in July 2021.
The rural inflation rate in July 2022 was 19.22% on a year-on-year basis; this was 2.47% higher compared to the 16.75% recorded in July 2021. On a month-on-month basis, the rural inflation rate in July 2022 was 1.811%, up by 0.002% compared to June 2022 (1.809%). The corresponding twelve-month average for the rural inflation rate in July 2022 was 16.25%. This was 0.52% higher compared to 15.73% recorded in July 2021.
Twitter-@theGBJournal| Facebook-The Government and Business Journal|email: gbj@govbusinessjournal.ng|govandbusinessj@gmail.com
