The latest National Bureau of Statistics (NBS) report shows that Nigeria’s inflation rate recorded a seventh consecutive monthly rise to 18.6 per cent in June.
The report released by NBS this Friday represents a 0.9 per cent point rise when compared to the 17.7 per cent recorded in May.
The NBS’ Consumer Price Index, CPI, Report, also stated that food inflation also increased by 1.1 per cent point to 20.6 per cent from 19.5 per cent in May.
According to the bureau, “In June 2022, the inflation rate increased to 18.60 per cent on a year-on-year basis. This is 0.84 per cent points higher compared to the rate recorded in June 2021, which is 17.75 per cent.
“Increases were recorded in all COICOP divisions that yielded the Headline index. “On a month-on-month basis, the Headline inflation rate increased to 1.82 per cent in June 2022, this is 0.03 per cent higher than the rate recorded in May 2022 (1.78 per cent).”
The report showed that on food inflation, “the composite food index rose to 20.60 per cent in June 2022 on a year-on-year basis; the rate of changes in average price level declined by 1.23 per cent compared to 21.83 per cent 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 COVID 19.
“This rise in the food index was caused by increases in prices of Bread and cereals, food products, potatoes, yam, and other tubers, meat, fish, oil and fat, and wine.”
The report is coming as economists and financial analysts projected further inflationary pressure in the remaining half of the year, citing the negative impact of the first half of the year.
Financial analysts at CardinalStone in their 2022 Mid-Year Macroeconomic Outlook said:” We see scope for sustained inflationary pressures in H2’22 due to the negative impact of the prior year’s low base.
“In addition, we see less respite for energy costs in the near term, with diesel and gas prices poised to stay elevated.”
In their H1’22 Macro-economy review analysts at Cowry Assets Management Plc noted that hyperinflation would among other things lead to desperation/survival modes and susceptibility to get-rich-quick schemes adding that the price level will remain elevated.
According to them, “Hyperinflation will lead to a drop in Purchasing power, a decline in aggregate demand with the attendant slowdown in productivity and employment, desperation/survival modes and susceptibility to get-rich-quick schemes.
“Higher energy prices and rising global food insecurity will keep inflation risk elevated.”