Nigeria saw an increase in its inflation rate in June 2023, rising to 22.79 percent Year-on-Year (YoY) from 22.41 percent in May.
Analysts, however, appear surprised by the relatively modest increase, as it exceeded their expectations in light of the industry reforms in the petroleum and foreign exchange sectors that increased prices in June. On the other hand, the National Bureau of Statistics (NBS) reports that the rate of food inflation increased year over year, reaching 25%.
Depreciation of the Naira
The Bureau reported that the inflation rate was 4% on an annual basis. The rate recorded in June 2022, which was 18, increased by 19 percentage points.
This indicates that the year-on-year headline inflation rate in June 2023 has risen compared to the corresponding month of the previous year.
- Nigeria saw an increase in its inflation rate in June 2023, rising to 22.79%.
- The Bureau reported that the inflation rate was 4% on an annual basis.
- The recent increase in rates in the unofficial market is expected to contribute additional pressure on prices.
The Urban inflation rate for June 2023 showed a 24 percent increase compared to the previous year. The inflation rate in rural areas reached 21% in June 2023.
65 percent higher compared to the rate documented in June 2022.
The year-on-year surge in food inflation resulted from price hikes in various items including oil and fat, bread and cereals, fish, potatoes, yam and other tubers, fruits, meat, vegetables, milk, cheese, and eggs.
Furthermore, the recent increase in rates in the unofficial market (perhaps influenced by seasonal demand) is expected to contribute additional pressure on prices.
Cordros Research analysts have also expressed their opinion, projecting that food prices will continue to rise in July as the ongoing effects of increased transportation costs are expected to keep food inflation at a high level. As a result, our anticipation is that food prices will increase by 2.
