The Nigerian Bureau of Statistics (NBS) released inflation data for July 2022, which reported a 19.64% increase in the annual Consumer Price Index, which indicates 1.04% higher than the 18.60% recorded in June 2022.
On a month-on-month basis, the headline inflation rate in July 2022 was 1.817%, which was 0.001% higher than the rate recorded in June 2022 (1.816 %).
The urban inflation rate was 20.09%, which was 2.08% higher compared to the 18.01% recorded in July 2021. On a month-on-month basis, the urban inflation rate was 1.82% in July 2022, this was a 0.0002% decline compared to June 2022 (1.82%). while the rural inflation rate in July 2022 was 19.22% on a year-on-year basis; this was 2.47% higher compared to the 16.75% recorded in July 2021. On a month-on-month basis, the rural inflation rate in July 2022 was 1.81%, up by 0.002% compared to June 2022 (1.809%).
The composite food index rose to 22.02% in July 2022 representing a 1.42% increase from 20.60% recorded in June 2022. On a year-on-year basis, it is 0.99% higher compared to the rate recorded in July 2021 (21.03%). This rise in food inflation was caused by increases in prices of Bread and cereals, Food products, Potatoes, yams and other tubers, meat, fish, oil, and fat.
The Russia-Ukraine crisis continues to have devastating effects on the global economy, resulting in rising energy prices and food costs. Hence we are likely to continue to see the inflation rate at elevated levels.