Headline Inflation in Nigeria Soars to New Height Of 17.71%

Headline inflation in Nigeria has recorded significant rise within the last 11 months. Latest figure by the National Bureau of Statistics (NBS) has shown that in May 2022, the inflation rate increased to 17.71 per cent on a year-on-year basis.

Increases were recorded in all Classification of individual consumption by purpose (COICOP) divisions that yielded the headline index, according to the figures that were released today.

On a month-on-month basis, the Headline inflation rate increased to 1.78 percent in May 2022, this is also 0.02 percent rate higher than the rate recorded in April 2022 (1.76) per cent.

The percentage change in the average composite consumer price index for the twelve months period ending May 2022 over the average of the CPI for the previous twelve months period is 16.45 per cent, showing a 0.95 percent increase compare to the 15.50 percent recorded in May 2021.

Urban inflation rate increased to 18.24 per cent (year-on-year); this is a 0.27 percent decline compared to 18.51 per cent recorded in May 2021. On a month-on-month basis, the urban inflation rate rose to 1.81 per cent in May 2022, this is a 0.03 per cent increase compared to April 2022 (1.78).

The corresponding 12-month average percentage change for the urban index is 17.00 percent in May 2022. This is 0.91 per cent higher compared to 16.09 percent reported in May 2021.

Also, rural inflation rate increased to 17.21 per cent in May 2022 (year-on-year) basis; this is a 0.15 percent decline compared to 17.36 recorded in May 2021. On a month-on-month basis, the rural index rose to 1.76 per cent in May 2022, up by 0.02 per cent from the rate recorded in April 2022 (1.74), while 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.

However, the latest NBS figure is 0.22 per cent points lower compared to the rate recorded in May 2021, which is (17.93) percent. This means that the headline inflation rate slowed down in the month of May when compared to the same month in the previous year (i.e. the year 2021).