Sunday, April 14, 2024

Food price increase drives Nigeria’s inflation rate to 24.08% in July

BY FESTUS OKOROMADU, ABUJA

Data released by the National Bureau of Statistic on Tuesday revealed that food items in Kogi, Lagos and Bayelsa States recorded the highest rate of inflation year-on-year in July 2023 as the country’s inflation rate hit 24.08 percent during the month.

The Consumer Price Index released by the NBS also revealed that Nigeria’s headline inflation rate rose by 1.29 percentage points in July 2023 to 24.08 percent relative to June 2023 headline inflation rate which was 22.79 percent.

According to the report, on a year-on-year basis, the headline inflation rate was 4.44 percentage points higher compared to the rate recorded in July 2022, which was 19.64 percent.

The NBS said Food and Non-Alcoholic Beverages led items that contributed to the inflation hike with a 12.46 percent rise year-on-year.

On food inflation and the states with the highest hike in food item in the month of July, the NBS reported that Kogi, Lagos and Bayelsa States capped the list while Jigawa, Sokoto and Kebbi States recorded lowest food prices in the month.

“In July 2023, Food inflation on a year-on-year basis was highest in Kogi (34.53 percent), Lagos (32.52 percent), and Bayelsa (31.31 percent), while Jigawa (20.90 percent), Sokoto (21.63 percent) and Kebbi (22.45 percent) recorded the slowest rise in Food inflation on a year-on-year basis.

“On a month-on-month basis, however, July 2023 Food inflation 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 rise in inflation on a month-on-month basis.

In addition, Kogi and Lagos states also took the lead in all items inflation rate in the month, the NBS said: “In July 2023, all items inflation rate on a year-on-year basis was highest in Kogi (28.45 percent), Lagos (27.30 percent), Ondo (26.83 percent), while Borno (20.71 percent), Jigawa (20.85 percent) and Sokoto (20.92 percent) recorded the slowest rise in headline inflation on a year-on-year basis.

“On a month-on-month basis, however, July 2023 recorded the highest increases in Kogi (4.99 percent), Abia (4.12 percent), Akwa Ibom (4.07 percent), while Jigawa (0.16 percent), Taraba (1.09 percent) and Yobe (1.10 percent) recorded the slowest rise on month-on-month inflation.”

Meanwhile, analysis of the impact of food inflation on the country’s inflation rate in July by NBS indicated that the food inflation rate in July 2023 was 26.98 percent on a year-on-year basis, which was 4.97 percent points higher compared to the rate recorded in July 2022 (22.02 percent).

“The rise in Food inflation 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, Vegetables, Milk, Cheese, and Eggs.

“On a month-on-month basis, the Food inflation rate in July 2023 was 3.45 percent, this was 1.06 percent higher compared to the rate recorded in June 2023 (2.40 percent). The rise in Food inflation on a month-on-month basis was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Fish, Oil, and Fat.

“The average annual rate of Food inflation for the twelve-month ending July 2023 over the previous twelve-month average was 24.46 percent, which was a 5.71 percentage points increase from the average annual rate of change recorded in July 2022 (18.75 percent),” the NBS stated.

The report further revealed that inflation was higher in urban areas of the nation.

“On a year-on-year basis, in July 2023, the Urban inflation rate was 25.83 percent, this was 5.74 percentage points higher compared to the 20.09 percent recorded in July 2022.

“On a month-on-month basis, the Urban inflation rate was 3.05 percent in July 2023, this was 0.75 percentage points higher compared to June 2023 (2.31 percent).

“The corresponding twelve-month average for the Urban inflation rate was 22.87 percent in July 2023. This was 5.59 percentage points higher compared to the 17.29 percent reported in July 2022.

“The Rural inflation rate in July 2023 was 22.49 percent on a year-on-year basis; this was 3.26 percentage points higher compared to the 19.22 percent recorded in July 2022.

“On a month-on-month basis, the Rural inflation rate in July 2023 was 2.74 percent, up by 0.78 percentage points compared to June 2023 (1.96 percent).

“The corresponding twelve-month average for the Rural inflation rate in July 2023 was 21.04 percent. This was 4.79 percentage points higher compared to the 16.25 percent recorded in July 2022,” the NBS said.

Popular Articles