Nigerian Inflation Rises Further, Defies Interest Rate Hike Again

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CEM Report | The Consumer Price Index which measures inflation has further increased in the month of July, Nigerian Bureau of Statistics has said.

Once again, inflation has defiled measures employed so far to curb the index including the two times consecutive increase in interest rate by the Monetary Policy Committee (MPC) of Central Bank of Nigeria (CBN).

CBN, in June increased interest rate from 11.5% to 13% and further to 14% in July having noted that the onset of harvest season will moderate prices of food which is basically results in the current increases.

According to the report released Monday by the government statistical organization, CPI for July 2022 was 463.6 relative to 387.5 in July 2021.

The headline inflation rose by 19.64% on a year –on- year basis. This was 2.27% points higher compared to the rate recorded in July 2021, which was (17.38 %). This shows that the headline inflation rate increased in the month of July 2022 when compared to the same month in the previous year (i.e., July 2021).

This means that in the month of July 2022 the general price level was 2.26% higher than in July 2021.

On a month-on-month basis, the Headline inflation rate in July 2022 was 1.817%, which was 0.001% higher than the rate recorded in June 2022 (1.816 %).

The percentage change in the average CPI for the twelve months period ending July 2022 over the average of the CPI for the previous twelve months period was 16.75%, showing a 0.46% increase compared to 16.30% recorded in July 2021.

NBS said food inflation rate in July 2022 was 22.02 % on a year-on-year basis; which was 0.99% higher compared to the rate recorded in July 2021 (21.03%). This rise in food inflation was caused by increases in prices of Bread and cereals, Food products n.e.c, Potatoes, yam and other tubers, meat, fish, oil, and fat.

On a month-on-month basis, the food inflation rate in July was 2.04%, this was a 0.01% insignificant decline compared to the rate recorded in June 2022 (2.05%). This decline is attributed to a reduction in the prices of some food items like Tubers, Maize, Garri, and Vegetables.

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The average annual rate of food inflation for the twelve-month period ending July 2022 over the previous twelve-month average was 18.75%, which was a 1.42% points decline from the average annual rate of change recorded in July 2021 (20.16%).the urban inflation rate was 1.82% in July 2022, this was a 0.0002% decline compared to June 2022 (1.82%).

The corresponding twelve-month average for the urban inflation rate was 17.29 % in July 2022. This was 0.40% higher compared to 16.89% reported in July 2021.

The report further said that urban inflation rate rose by 20.09% on a year-on-year basis, this was 2.08% higher compared to 18.01% recorded in July 2021. On a month-on-month basis,

The rural inflation rate in July 2022 was 19.22% on a year-on-year basis; this was 2.47% higher compared to the 16.75% recorded in July 2021. On a month-on-month basis, the rural inflation rate in July 2022 was 1.811%, up by 0.002% compared to June 2022 (1.809%). The corresponding twelve-month average for the rural inflation rate in July 2022 was 16.25%. This was 0.52% higher compared to 15.73% recorded in July 2021.

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