Nigeria’s headline inflation rate rose to 17.71% year-on-year (y/y) basis in May, according to the National Bureau of Statistics (NBS) Consumer Price Index (CPI) and Inflation Report May 2022 released yesterday in Abuja.
The report says the rate “is 0.22 per cent points lower, compared to the rate recorded in May 2021, which is 17.93 per cent. This means that the headline inflation rate slowed down in May 2022 when compared to the same month in the previous year.
“Increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index.”
The report said on a month-on-month (m/m) basis, the headline inflation rate increased to 1.78% in May 2022, this is also 0.02% higher than the rate recorded in April 2022 at 1.76%.
“The percentage change in the average composite CPI for the 12 months period ending May 2022 over the average of the CPI for the previous 12 months period is 16.45 per cent. This shows a 0.95 per cent increase compared to the 15.50 per cent recorded in May 2021.”
The urban inflation to 18.24% y/y, a 0.27% decline compared to the 18.51% recorded in May 2021, while m/m the rate rose to 1.81% per cent in May or 0.03% increase compared to April 2022 at 1.78%.
The report also said the corresponding 12-month average percentage change for the urban index is 17.00% in May 2022. “This is 0.91 per cent higher, compared to 16.09 per cent reported in May 2021.”
For the rural inflation, the rate increased to 17.21% y/y in May 2022, a 0.15% decline from the 17.36% recorded in May 2021, while month-on-month, the index rose to 1.76% in May, up by 0.02% at 1.74% recorded in April 2022.
“The corresponding 12-month average percentage change for the rural inflation rate in May 2022 is 15.91 per cent. This is 0.97 per cent higher, compared to 14.94 per cent recorded in May 2021,” the report said.
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, Wine, Fish, Meat, and Oils.
Food Inflation
The food index continued on the upward climb to 19.50% y/y in May, although a 2.78% decline compared to the 22.28% in May 2021. “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, Wine, Fish, Meat, and Oils.”
The food sub-index rose to 2.01% m/m in May, up by 0.01% from 2% recorded in April. “The average annual rate of change of the Food sub-index for the twelve-month period ending May 2022 over the previous twelve-month average is 18.68 percent, 0.05 percent points decline from the average annual rate of change recorded in May 2021 (19.18) percent.
The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 14.90% y/y, up by 1.75% compared to 13.15% recorded in May 2021.
On a month-on-month basis, the core sub-index increased to 1.87% in May up by 0.65% against the 1.22% recorded in April 2022.
“The highest increases were recorded in prices of Gas, Liquid fuel, Garment, Solid fuel, Cleaning, Repair and Hire of clothing and Passenger transport by road.
“The average 12-month annual rate of change of the index was 13.83 percent for the twelve-month period ending May 2022; this is 2.33 percent points higher than 11.50 percent recorded in May 2021.”
The rate of rise was highest in Bauchi (20.62%), Akwa Ibom (20.34%), and Rivers (19.95%), while Kwara (15.45%), Kaduna (15.69%), and lowest in Jigaawa (16.15%) recorded the slowest rise in year-on-year.
