Nigeria’s inflation has reached a seventeen-year high of 19.64 per cent amidst the Central Bank of Nigeria’s effort to curb soaring prices.
Headline Inflation rose to 19.64 per cent in July, from 17.38 per cent in July 2021. In June, inflation was 18.60 per cent.
“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,” said NBS.
Food inflation rate in July 2022 worsened to 22.02 per cent compared to the 21.03 per cent recorded in July 2021.
But the NBS said food prices fell on a monthly basis from 22.02 per cent in June to 22.05 per cent in July.
“This decline is attributed to a reduction in the prices of some food items like Tubers, Maize, Gari, and Vegetables,” the NBS noted.
The result is coming despite CBN’s aggressive inflationary policy which led to the hike in monetary policy rate from 13 per cent to 14 per cent in July 2022.
The CBN made the first hike of MPR to 13 per cent in May due to inflationary pressures.
Urban inflation rate was 20.09 per cent in July compared to 18.01 per cent recorded in July 2021.
Rural inflation in July 2022 was 19.22 per cent on a year-on-year basis compared to the 16.75 per cent recorded in July 2021.
In terms of states, inflation rate on a year-on-year basis was highest in Akwa Ibom (22.88 per cent), Ebonyi (22.51 per cent) and Kogi (22.08 per cent), while Jigawa (16.62 per cent), Kaduna (17.04 per cent) and Borno (18.04 per cent) recorded the slowest rise in headline year-on-year inflation.
It said, “Looking at the urban and rural distribution of the Consumer Price Index, the index for urban inflation rate on a year-on-year was 20.09 percent in July 2022. This was higher compared to 18.01 percent reported in July 2021.
“On a month-on-month basis, the urban inflation rate was 1.8209 percent in July 2022, a decrease compared to June 2022 with 1.8211 percent.
The rural inflation was 19.22 percent in July 2022 on a year-on-year basis, higher compared to the 16.75 percent recorded in July 2021. On a month-on-month basis, the rural rate was 1.811 percent in July 2022, also higher than 1.809 percent in June 2022.”