Inflation Bites Harder, Hits  22.41% in May 2023

Cost of living in Nigeria as measured by the Consumer Price Index (CPI) has maintained its upward trend as the CPI otherwise known as inflation again hit a record level in the month of May, according to the latest figure by the nation’s statistics bureau.

The National Bureau of Statistics (NBS) data that was released on Thursday showed that in May 2023, the headline inflation rate increased to 22.41 per cent relative to April 2023 headline inflation rate which was 22.22 per cent.

Looking at the movement, the May 2023 inflation rate showed an increase of 0.19 per cent points when compared to April 2023 headline inflation rate.

The NBS data revealed that on a year-on-year basis, the headline inflation rate was 4.70 per cent points higher compared to the rate recorded in May 2022, which was (17.71 per cent).

This shows that the headline inflation rate (year-on-year basis) increased in the month of May 2023 when compared to the same month in the preceding year (i.e. May 2022).

Food inflation

The Food inflation rate rose to 24.82% in May 2023, representing a 0.21% point increase from 24.61% recorded in the previous month and 5.3% points higher than 19.5% recorded in the corresponding period of 2022.

On a month-on-month basis, the Food inflation rate in May 2023 was 2.19%, this was 0.06% higher compared to the rate recorded in April 2023 (2.13%).

The average annual rate of Food inflation for the twelve-months ending May 2023 over the previous twelvemonth average was 23.65%,

The rise in food inflation on a year-on-year basis was caused by increases in prices of Oil and fat, Yam and other tubers, Bread and cereals, Fish, Potatoes, Fruits, Meat, Vegetable, and Spirits.

Core inflation

The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 20.06% in May 2023 on a year-on-year basis; up by 5.16% when compared to the 14.90% recorded in May 2022.

On a month-on-month basis, the Core inflation rate was 1.81% in May 2023. It stood at 1.46% in April 2023, up by 0.35%.

The average twelve-month annual inflation rate was 18.33% for the twelve months ending May 2023.

The highest increases were recorded in gas prices, passenger transport by air, Liquid fuel, vehicle spare parts, fuels and lubricants for personal transport equipment, medical services, and passenger transport by road.