Nigeria’s Inflation Rises to 22.22% in the Month of April 2023

April 2023 saw a marginal uptick in the headline inflation rate, with figures reaching 22.22% compared to the previous month’s rate of 22.04%. Although the increase may appear small at 0.18% points, it signifies a continuation of the persistent inflationary trend in the economy.

Examining the year-on-year data, the headline inflation rate in April 2023 experienced a notable surge of 5.40% points compared to the rate recorded in April 2022, which stood at 16.82%. This substantial rise demonstrates that the headline inflation rate in April 2023 surpassed the corresponding period of the preceding year.

Digging deeper into the components contributing to the inflationary pressure, the divisional level breakdown reveals the following:

• Food & Non-Alcoholic Beverages: 11.51%
• Housing Water, Electricity, Gas & Other Fuel: 3.72%
• Clothing & Footwear: 1.70%
• Transport: 1.45%
• Furnishings & Household Equipment & Maintenance: 1.12%
• Education: 0.88%
• Health: 0.67%
• Miscellaneous Goods & Services: 0.37%
• Restaurant & Hotels: 0.27%
• Alcoholic Beverages, Tobacco & Kola: 0.24%
• Recreation & Culture: 0.15%
• Communication: 0.15%

These figures emphasize the significant contribution of various sectors to the overall inflationary pressures experienced during the period.

Analyzing the month-on-month movement, the All-Items Index for April 2023 rose to 1.91%, representing a 0.05% point increase compared to March 2023 (1.86%). This indicates a slight general price level increment in April 2023 relative to the preceding month.

Moreover, the percentage change in the average Consumer Price Index (CPI) for the twelve months ending in April 2023 stood at 20.82%, exhibiting a 4.37% increase from the 16.45% recorded in April 2022. This notable rise in the average CPI further demonstrates the persistent upward trajectory of inflation.

Urban Inflation:

In the urban areas, the inflation rate for April 2023 stood at 23.39% on a year-on-year basis, significantly higher by 6.05% points compared to the rate recorded in April 2022 (17.35%). On a month-on-month basis, urban inflation reached 2.05% in April 2023, rising slightly by 0.05% points from March 2023 (2.00%). The corresponding twelve-month average for urban inflation in April 2023 was 21.50%, reflecting a 4.49% point increase compared to April 2022 (17.01%).

Rural Inflation:

For rural areas, the inflation rate in April 2023 was 21.14% on a year-on-year basis, marking an increase of 4.82% points compared to April 2022 (16.32%). On a month-on-month basis, rural inflation slightly rose to 1.78% in April 2023, up by 0.06% points compared to March 2023 (1.72%). The corresponding twelve-month average for rural inflation in April 2023 was 20.18%, highlighting a 4.27% point rise from April 2022 (15.91%).

The steady rise in both urban and rural inflation rates confirms the widespread nature of inflationary pressures across various sectors and geographical areas.