The Consumer Price Index (CPI) report of the National Bureau of Statistics (NBS) has revealed that the inflation rate has climbed to 19.64% in July 2022.
Comparing on year to year basis, NBS said the inflation rate in July 2021 was 17.38% —meaning there was an increase of 2.27%.
“Consumer Price Index (CPI) for July 2022 was 463.6 relative to 387.5 in July 2021. In July 2022, on a year–on–year basis, the headline inflation rate was 19.64%.
“This was 2.27% points higher compared to the rate recorded in July 2021, which was (17.38 %).
“This shows that the headline inflation rate increased in the month of July 2022 when compared to the same month in the previous year (i.e., July 2021).
“This means that in the month of July 2022 the general price level was 2.26% higher than in July 2021.
“On a month-on-month basis, the Headline inflation rate in July 2022 was 1.817 %, which was 0.001% higher than the rate recorded in June 2022 (1.816 %).
“The percentage change in the average CPI for the twelve months period ending July 2022 over the average of the CPI for the previous twelve months period was 16.75%, showing a 0.46% increase compared to 16.30% recorded in July 2021,” NBS said in the report .
Food inflation rate
According to the report, the food inflation rate in July 2022 was 22.02 % on a year-on-year basis; which was 0.99% higher compared to the rate recorded in July 2021 (21.03%).
The NBS attributed the rise in food inflation to increases in prices of Bread and cereals, Food products n.e.c, Potatoes, yam and other tubers, meat, fish, oil, and fat.
“On a month-on-month basis, the food inflation rate in July was 2.04%, this was a 0.01% insignificant decline compared to the rate recorded in June 2022 (2.05%).
“This decline is attributed to a reduction in the prices of some food items like Tubers, Maize, Garri, and Vegetables. The average annual rate of food inflation for the twelve-month period ending July 2022 over the previous twelve-month average was 18.75%, which was a 1.42% point decline from the average annual rate of change recorded in July 2021 (20.16%)”.
Daily items inflation
The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 16.26% in July 2022 on a year-on-year basis; up by 2.54% when compared to 13.72% recorded in July 2021. On a month-on-month basis, the core inflation rate was 1.75% in July 2022.
This was up by 0.20% when compared to 1.56% recorded in June 2022. 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.
The average 12-month annual inflation rate was 14.28% for the twelve-month period ending July 2022; this was 2.23% points higher than the 12.05% recorded in July 2021.
Inflation by states
Akwa Ibom (22.88%) inflation was the highest followed by Ebonyi (22.51%), and Kogi (22.08%) on a year-on-year basis.
Jigawa (16.62%) recorded the slowest inflation rate followed by Kaduna (17.04%) and Borno (18.04%) in headline year-on-year inflation.
However, NBS said, 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.
The CPI measures the average change over time in the prices of goods and services consumed by people for day-to-day living. The construction of the CPI combines economic theory, sampling, and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy.
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