The naira plunges to 430.33 naira per dollar on the official foreign exchange market
By Adedapo Adesanya
Inflation in Nigeria hit its highest level in five and a half years, the Consumer Price Index (CPI), which measures the rate of change in the prices of goods and services, jumped to 18.6% in June 2022.
This represents an increase from 17.71% in the previous May, according to the National Bureau of Statistics (NBS) in its June 2022 CPI report released on Friday July 15, 2022.
This is the biggest jump in the metric since January 2017 and is also 0.84% higher than June 2021, which was 17.75%.
According to the report, increases were recorded in all divisions of the Classification of Individual Consumption by Purpose (COICOP) that gave the overall index.
“On a monthly basis, the headline inflation rate increased to 1.82% in June 2022, 0.03% higher than the rate recorded in May 2022 (1.78%),” the report said.
“The percentage change in the average composite CPI for the twelve months ending June 2022 from the average CPI for the previous twelve month period is 16.54%, showing an increase of 0.62 % compared to the 15.93% recorded in June 2021.”
The report adds that food inflation reached 20.60% in June 2022 on an annual basis, but the rate of change in the average price level decreased by 1.23% compared to 21.83% in June 2021.
The report further explained that the rate of change in food prices compared to the same period last year was higher due to increased food price volatility caused by COVID 19.
“This increase in the food index was caused by the increase in the prices of bread and cereals, nec food products, potatoes, yams and other tubers, meat, fish, oils and fats and wine,” he added.
“On a monthly basis, the food sub-index rose to 2.05% in June 2022, up 0.03% from the 2.01% recorded in May 2022.”
Analyzing the price movements for the states, the report indicated that Bauchi and Kogi states were the highest.
“In June 2022, inflation of all items on an annual basis was highest in Bauchi (21.99%), Kogi (21.37%), Ebonyi (20.73%) while Adamawa (16 .14 percent), Sokoto (16.31 percent) and Jigawa (16.37 percent) recorded the lowest year-on-year rise in headline inflation,” he said. he declares.
“On a monthly basis, however, June 2022 saw the highest increases in Kogi (2.69%), Ondo (2.65%) and Kaduna (2.61%), while Adamawa (-0.26 %), Abuja (-0.03%) and Sokoto (0.79%) recorded the smallest increases in inflation month on month.