CEM REPORT | Nigerian inflation has increased to its highest in 8 months according to the report for the month of April released Monday by the Nigerian Bureau of Statistics.
In April 2022, the consumer price index, (CPI) which measures inflation increased to 16.82 percent on a year-on-year basis. This is 0.9% points higher than the 15.92% recorded in the previous month which is March 2022
The uptick in inflation for the month of April is straightly due to the rising cost of energy (electricity and diesel) and increased food prices.
However, the April 2022 inflation figure is 1.3 percent points lower compared to the rate recorded in April 2021 (18.12) percent. This means that the headline inflation rate slowed down in April when compared to the same month in the previous year.
NBS said Increases were recorded in all COICOP divisions that yielded the Headline index
On a month-on-month basis, the Headline index increased to 1.76 percent in April 2022, this is a 0.02 percent rate higher than the rate recorded in March 2022 (1.74) percent.
[READ ALSO] Is Nigeria Creeping Towards Debt Trap with China?
The percentage change in the average composite CPI for the twelve months period ending April 2022 over the average of the CPI for the previous twelve months period is 16.45 percent, showing a 0.1 percent decrease compare to the 16.54 percent recorded in March 2022.
The urban inflation rate increased to 17.35 percent (year-on-year) in April 2022 from 18.68 percent recorded in April 2021, while the rural inflation rate increased to 16.32 percent in April 2022 from 17.57 percent in April 2021.
On a month-on-month basis, the urban index rose to 1.78 percent in April 2022, up by 0.02 from the rate recorded in March 2022 (1.76), while the rural index also rose to 1.74 percent in April 2022, up by 0.01 from the rate that was recorded in March 2022 (1.73) percent.
The corresponding twelve-month year-on-year average percentage change for the urban index is 17.01 percent in April 2022. This is lower than 17.10 percent reported in March 2022, while the corresponding rural inflation rate in April 2022 is 15.91 percent compared to 16.00 percent recorded in March 2022.
The composite food index rose to 18.37 percent in April 2022 compared to 22.72 percent in April 2021.
This rise in the food index was caused by increases in the prices of Bread and cereals, Food products n.e.c, Potatoes, yam, and other tubers, Wine, Fish, Meat, and Oils
On a month-on-month basis, the food sub-index increased to 2.00 percent in April 2022, up by 0.01 percent points from 1.99 percent recorded in March 2022.
The average annual rate of change of the Food sub-index for the twelve-month period ending April 2022 over the previous twelve-month average is 18.88 percent, 0.34 percent points from the average annual rate of change recorded in March 2022 (19.21) percent.
The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 14.18 percent in April 2022, up by 1.44 percent when compared with 12.74 percent recorded in April 2021.
On a month-on-month basis, the core sub-index increased to 1.22 percent in April 2022. This is down by 0.24 percent when compared with 0.98 percent recorded in March 2022.
The highest increases were recorded in prices of Gas, Liquide fuel, Cleaning, repair and hire of clothing, Clothing materials, other articles of clothing, and clothing accessories.
The average 12-month annual rate of change of the index was 13.68 percent for the twelvemonth period ending April 2022; this is 0.12 percent points higher than the 13.56 percent recorded in March 2022.