Nigerians paid more for food items, as food inflation rose to 20.60% in June, even as composite price index (CPI), which measures the rate of increases soared to a 5-year high of 18.60%.
The composite food index rose to 20.60% in June 2022 on a year-on-year basis; the rate of changes in average price level fell by 1.23% against 21.83% in June 2021.
On a month-on-month basis, the food sub-index increased to 2.05% in June 2022, up by 0.03% from the 2.01% recorded in May 2022.
Latest CPI report released by the National Bureau of Statistics (NBS) on Friday attributed the rise in the food index to “increases in prices of Bread and cereals, Food products n.e.c, Potatoes, yam, and other tubers, Meat, Fish, Oil and fat, and Wine.”
The report also said: “the rate of changes in food prices compared to the same period last year was higher due to higher food prices volatility caused by COVID 19.”
The average annual rate of change of the Food sub-index for the twelve-month period ending June 2022 over the previous 12-month average is 18.62%, which is 1.10% points decline from the average annual rate of change recorded in June 2021 (19.72%).
On the CPI for June, the report said the inflation rate increased to 18.60% on a year-on-year (y-y) basis. This is 0.84% higher than the 17.75% recorded in June 2021.
The report added: “Increases were recorded in all COICOP divisions that yielded the Headline index.”
“The rate of changes in food prices compared to the same period last year was higher due to higher food prices volatility caused by COVID 19.”
Also, on a month-on-month basis, the Headline inflation rate increased to 1.82% in June or 0.03% higher than May rate of 1.78%.
The percentage change in the average composite CPI year-on-year was 16.54%, a 0.62% increase above the 15.93% recorded in June 2021.
Similarly, the urban inflation rate in June increased to 19.09% year-on-year or 0.74 above the 18.35% recorded in June 2021. On a month -on-month basis, the urban inflation rate rose to 1.82% in June, or 0.01% compared to 1.81% recorded in May.
The corresponding 12-month average percentage change for the urban index is 17.09% in 2022, a 0.58% higher compared to 16.51% reported in June 2021.
Also, the rural inflation rate increased to 18.13% year-on-year, a 0.97% increase compared to 17.16% recorded in June 2021. On a month-on-month basis, the rural index rose to 1.81% in June, up by 0.05% from the 1.76% recorded in May.
The corresponding 12-month average percentage change for the rural inflation rate in June 2022 was 16.02%, or 0.66% higher compared to 15.36% recorded in June 2021.
