Nigeria’s inflation jumps to 19.64%, highest in 16 years

Nigeria’s Consumer Price Index (CPI) otherwise known as the headline inflation sustained its upward movement as it rose to 19.64 percent in July 2022 on a year-on-year basis compared with 17.38 percent in July 2021.

This is the highest inflation figure since October 2005 when inflation was 24.3 percent, Nigeria’s data agency, the National Bureau of Statistics (NBS) announced on Monday.

Nigeria’s inflation rate in the month of July 2022 rose to a 16-year high of 19.64%. This compares to 18.6% recorded in the previous month of June 2022.

The National Bureau of Statitics (NBS) gave the latest inflation figure in its Consumer Price Index (CPI) report for the month of July 2022 released on Monday.

The last time Nigeria’s inflation was above 19.64% was in September 2005 when it rose to 24.32%.

Read also:New NBS report contradicts Buhari’s claim on Nigeria’s economy

The breakdown from the report shows that the urban inflation rate rose by 2.08% to 20.09% in July 2022 from 18.01% recorded in July 2021, while the rural inflation rate hit 19.22% from 16.75% recorded in the corresponding period of 2021.

The closely watched indicator to its highest level in 14 months, standing at 22.02% in July 2022, representing a 1.42%-point increase compared to 20.6% recorded in the previous month.

Food inflation also rose to its highest level in 14 months, standing at 22.02% in July 2022, representing a 1.42%-point increase compared to 20.6% recorded in the previous month.

On a month-on-month basis, the food inflation rate in July stood at 2.04%, this is 0.01% lower than 2.05% recorded in the previous month.

NBS noted that the rise in food inflation was caused by increases in prices of bread and cereals, food products, potatoes, yam and other tubers, meat, fish, oil, and fat.

Meanwhile, 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 represents a 1.42% points decline from the average annual rate of change recorded in July 2021 (20.16%).

The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 16.26% in July 2022, compared to 15.75% recorded in the previous month. This also represents the highest core inflation rate since January 2017, when the rate stood at 17.8%.

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.

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.

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