Nigeria’s Headline Inflation Hits 22.79% YoY in June, Escalating Economic Concerns

Nigeria’s headline inflation grew at 22.79% pace year on year in the month of June from 22.41% recorded in May, according to the National Bureau of Statistics (NBS).

Of particular concern is the food inflation rate, which spiked to 25.25 percent in June, surpassing the previous month’s rate of 24.82 percent. This represents a substantial increase and contributes to the overall inflationary pressure faced by Nigerians.

NBS attributed the rise in food inflation to various factors, including soaring prices of essential commodities such as oil, fat, bread, cereals, fish, potatoes, yam, other tubers, fruits, meat, vegetables, milk, cheese, and eggs.

The escalating costs of these basic food items directly impact the average Nigerian’s purchasing power and overall standard of living.

The headline inflation rate for June 2023 is 4.19 percentage points higher than that of June 2022, which stood at 18.6 percent. Indicating a substantial increase and highlighted the persistent inflationary pressures faced by the nation.

Breaking down the statistics, the urban inflation rate in June 2023 stood at 24.33 percent, representing a 5.23 percentage points increase when compared to the 19.09 percent recorded in June 2022.

Meanwhile, the rural inflation rate in June 2023 reached 21.37 percent, reflecting an increase of 3.25 percentage points when compared to the 18.13 percent recorded in the same period last year.

Nigerians face mounting challenges in meeting their everyday needs. The adverse effects of inflation on disposable income and savings are particularly concerning, hindering economic growth and stability.