Nigeria’s inflation rate rose to 18.60% year-on-year in the month of June, according to the latest data from the National Bureau of Statistics (NBS).
This represents an increase of 0.84% from 17.75% recorded in the month of June 2021 and highlighted the inefficiency of the Central Bank of Nigeria’s (CBN) policy of raising interest rates to curb inflation.
In May, the CBN raised the interest rate by 150 basis points in May to curb the rising inflation number. However, since the apex bank increased borrowing costs, the inflation rate has remained on the high side.
On a monthly basis, inflation grew by 1.82% in June, up from 0.03% higher than the 1.78% achieved in May 2022.
Food Index
Nigeria’s food index, however, increased at a slower pace of 20.60% in the month of June, a 1.23% decline from 21.83% filed in June 2021.
The rate of changes in food prices compared to the same period last year was higher due to higher foods prices volatility caused by COVID19. This rise in the food index 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, and Wine.
On a monthly basis, the food sub-index increased to 2.05 percent in June 2022, up by 0.03 percent points from 2.01 percent recorded in May 2022.
The average annual rate of change of the Food sub-index for the twelve-month period ending June 2022 over the previous twelve-month average is 18.62 percent, which is 1.10 percent points decline from the average annual rate of change recorded in June 2021 (19.72 percent).
