Nigeria’s Annual Inflation Hits 19.6% In July, The Highest Since 2005

The Nigerian Bureau of Statistics has reported a high movement in Nigeria’s annual inflation rate in the last 10 years (July year-on-year).

The consumer price index (CPI), which measures the rate of change in goods and services prices, increased to 19.64 percent in July 2022, up from 18.60 percent the previous month.

The increase is 1.82% month on month, and it is the highest inflation rate recorded since September 2005.

This was announced by the National Bureau of Statistics (NBS) on Monday in its consumer price index (CPI) report for July 2022.

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NBS reported that the headline inflation rate in July 2022 was 1.817%, which was 0.001% higher than the rate in June 2022 (1.816%).

According to the report, “The percentage change in the average CPI for the twelve months period ending July 2022 over the average of the CPI for the previous twelve months period was 16.75%, showing a 0.46% increase compared to 16.30% recorded in July 2021,”

Analysts say, Nigeria’s annual inflation quickened to its highest level in five and a half years in June.

Official data showed in July reveals that the inflation is mostly driven by rising prices of staples like bread, rice and maize and the cost of diesel, which is used to generate power.

The Nigeria’s annual inflation rose to its highest level in nearly two years in January, after land borders were closed to trade in an uncalculated bid to tackle smuggling.

In earlier published April CPI report by the NBS, Nigeria’s annual headline inflation rate rose to an 8-month high of 16.82% (March: 15.92%).

Month-on-month, the headline inflation rose by 1.76% (March: 1.74%).

In May, it was estimated that headline inflation would print at 1.45% m/m and 17.33% y/y.

According to an Afrivest report, the MPC meeting in March, 4 of the 10 committee members voted for a rate hike – a major shift from a one-year trend. Since then, global economic conditions have worsened.

Nigeria’s Annual Inflation rate since 2013

2013: 8.7%

2014: 8.3%

2015: 9.2%

2016: 17.13%

2017: 16.05%

2018: 11.14%

2019: 11.08%

2020: 12.82%

2021: 17.38%

2022: 19.64%

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