- NBS says current figure highest ever in 18 years
BY EDMOND ODOK – The National Bureau of Statistics (NBS) says Nigerians are groaning under higher food prices as the country’s annual inflation rate hit the highest figure in 18 years as it rose to over 24.08 percent by the end of July 2023.
According to the Bureau, aside from higher prices of food items, the soaring inflation rate was driven by increased transportation fares that reflect households’ struggle to meet daily feeding needs further worsened by the impact of fuel subsidy removal and continued depreciation of the Naira.
Current figures released by the Bureau indicate that the higher inflation rate, representing 1.29 percentage points from 22.79 percent in June, was due to increases in prices of basic food items, such as oil and fat, fish, milk, cheese, eggs, potatoes, yam, and other tubers, fruits, meat, vegetables, bread, and cereals.
Further statistics showed that food inflation rose to 26.98 percent, the highest level in 18 years, since September 2005, even as it reflects that the impact of fuel subsidy removal on the cost of transportation and related services, core inflation (all items less farm produce and energy), saw inflation rising to 20.47 percent in July, the highest in 19 years. The figure is up by 0.41 percentage points from 20.06 percent in June.
The NBS stated in its Consumer Price Index report for August 2023 that the price hike in food and non-alcoholic beverages was largely responsible for the increase (about 12.47 percent) witnessed in the headline inflation rate to 24.08 percent in July. This is in addition to housing water, electricity, gas & other fuel (4.03 percent); clothing and footwear (1.84 percent); transport (1.57 percent); furnishings, household equipment, and maintenance (1.21 percent).
The NBS’ reports also stated thus; “In July 2023, the headline inflation rate rose to 24.08% relative to June 2023 headline inflation rate which was 22.79%. Looking at the movement, the July 2023 headline inflation rate showed an increase of 1.29% points when compared to June 2023 headline inflation rate.
“On a year-on-year basis, the headline inflation rate was 4.44% points higher compared to the rate recorded in July 2022, which was 19.64%. This shows that the headline inflation rate (year-on-year basis) increased in July 2023 when compared to the same month in the preceding year (i.e., July 2022).
“In addition, on a month-on-month basis, the headline inflation rate in July 2023 was 2.89%, which was 0.76% higher than the rate recorded in June 2023 (2.13%). This means that in July 2023, on average, the general price level was 0.76% higher relative to June 2023. The percentage change in the average CPI for the twelve-month period ending July 2023 over the average of the CPI for the previous twelve-month period was 21.92%, showing a 5.17 percent increase compared to 16.75 percent recorded in July 2022.’’
On the issue of food inflation, the NBS noted that the rate in July 2023 was 26.98% on a year-on-year basis, representing 4.97 percent points higher, compared to the rate recorded in July 2022 (22.02 percent) while the month-on-month basis food inflation rate in July 2023 stood at 3.45 percent, representing about 1.06 percent higher as against the rate (2.40 percent) recorded in June 2023.
The average annual rate of food inflation for the twelve-month ending July 2023 over the previous twelve-month average was 24.46%, which was a 5.71 percent points increase from the average annual rate of change recorded in July 2022 (18.75 percent)
For core inflation, the NBS said; “All items less farm produce and energy” or core inflation, which excludes the prices of volatile agricultural produce and energy stood at 20.47% in July 2023 on a year-on-year basis; up by 4.41% when compared to the 16.06% recorded in July 2022.
The highest increases were recorded in prices of passenger transport by air, passenger transport by road, vehicle spare parts, medical services, maintenance, and repair of personal transport equipment among others.
On a month-on-month basis, the core Inflation rate was 2.11 percent in July 2023, up by 0.34% points from 1.77% in June 2023. The average twelve-month annual inflation rate was 18.84% for the twelve-month ending July 2023; this was 4.31% points higher than the 14.53% recorded in July 2022.
