• Monday, December 04, 2023
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Nigeria’s food inflation hit 26.9% in July

Inflation in Nigeria: A monetary and productivity challenge

Nigeria has continued to record increase in food inflation rate, reaching 26.98 percent in July 2023, representing a 4.97 percent points higher relative to the rate recorded in June 2022 (22.02 percent).

According to the National Bureau of Statistics report, the rise in food index on a year-on-year basis was caused by increases in prices of Oil and fat, Bread and cereals, Fish, Potatoes, Yam and other tubers, Fruits, Meat, Vegetable, Milk, Cheese, and Eggs.

Similarly, the Food inflation rate on a month-on-month basis, in July 2023 rose to 3.45 percent, this was 1.06 percent points higher compared to the rate recorded in June 2023 (2.40 percent).

The average annual rate of Food inflation for the twelve months ending July 2023 over the previous twelve-month average was 24.46 percent, indicating an increase of 5.71 percent points from 18.75 percent recorded in July 2022.

State-level analysis of the food index in July 2023, on a year-on-year basis, showed the highest increases in Kogi (34.53 percent), Lagos (32.52 percent) and Bayelsa (31.31 percent). While Jigawa (20.90 percent), Sokoto (21.63percent) and Kebbi (22.45 percent) recorded the slowest rise in Food inflation during the month.

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On a month-on-month basis, food inflation for July 2023 was highest in Kogi (6.73 percent), Akwa Ibom (5.64 percent) and Bayelsa (4.59 percent), while Taraba (-0.21 percent), Jigawa (0.28 percent) and Yobe (0.90 percent) recorded the slowest food inflationary rate on a month-on-month basis.

The report also show that the headline inflation rate for the month of July 2023 increased to 24.08 percent compared to 22.79 percent recorded in June 2023.

Furthermore, the increase in the headline index for July 2023 was attributed to an increase in contributions of some items in the basket of goods and services at the divisional level.

“These increases were witnessed in food & non-alcoholic beverages (12.47 percent), housing, water, electricity, gas & other fuel (4.03 percent), clothing & footwear (1.84 percent), transport (1.57 percent), furnishings & household equipment & maintenance (1.21 perce t), education (0.95%) and health (0.72 percent).

“Others are miscellaneous goods & services (0.40percent), restaurants & hotels (0.29percent), Alcoholic beverages, tobacco & kola (0.26percent), recreation & culture (0.17 percent) and Communication (0.16 percent).

“On a month-on-month basis, the Headline inflation rate in July 2023 rose to 2.89 percent, this shows an average increase of 0.76 percentage points on the general price level relative to June 2023,” it stated.

The core inflation, which is all items less farm produce, that is excluding the prices of volatile agricultural produce, stood at 20.47 percent in July 2023.

On a year-on-year basis; it rose by 4.41 percent when compared to the 16.06 percent recorded in July 2022. “This was driven by an increase in prices of passenger transport by air, passenger transport by road, vehicle spare parts, medical services, maintenance and repair of personal transport equipment.

The inflation rate in July 2023 for Urban consumers was 25.83 percent on a year-on-year basis. This indicated an increase of 5.74 percent points higher compared to the 20.09 percent recorded in July 2022.

Similarly, the inflation rate for rural consumers in the month of July 2023 was 22.49 percent on on a year-on-year basis; this was 3.26 percent points higher compared to the 19.22 percent recorded in July 2022