WED, 15 JUNE, 2022-theGBJournal| Nigeria’s headline inflation increased by 89bps in May to 17.71% y/y (April: 16.82% y/y) – the highest since June 2021 (17.75% y/y), according to THE inflation figure published today by the National Bureau of Statistics (NBS).
The outturn is 15bps higher than Cordros’ estimate (17.56% y/y) and 21bps higher than Bloomberg’s median consensus estimate (17.50% y/y). On a month-on-month basis, headline inflation rose by 2bps to 1.78% (April: 1.76% m/m). Access Bank’s Economic Intelligence Unit predicted a rise to 17.56% as did Cordros.
Food inflation rose to its highest level in nine months, accelerating by 113bps to 19.50% y/y (April: 18.37% y/y). Notably, pressure was most significant in the prices of Bread and cereals, Food products, Potatoes, yam and other tubers, Wine, Fish, Meat, and Oils. On a month-on-month basis, food inflation increased by 2.01%, relative to the 2.00% m/m recorded in the previous month.
Similarly, the core inflation maintained the previous month’s uptrend, increasing by 72bps to 14.90% y/y (April: 14.18% y/y) – the highest in five years.
Pressures were most significant in the prices of Gas, Liquid fuel, Garment, Solid fuel, Cleaning, Repair and Hire of clothing and Passenger transport by road. Compared to the previous month, the core index increased by 65bps to 1.87% m/m in May 2022.
Analysts at Access Economic Intelligence Unit blames the faster rise in the general price level on imported inflation arising from the ongoing Russia-Ukraine war which has aggravated supply chain disruptions- in existence since the onset of COVID-19, and supply disruptions of agricultural produce due to insecurity concerns in food basket states which also contributed to rising price level.
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