Inflation rate defies all measures, hits 11-month high of 17.71% in May

Inflation rate in Nigeria surged to 17.71 per cent in May 2022, up from 16.82 per cent recorded in the previous month of April, triggered by astronomical increases in food index, Gas, Liquid fuel, Garment, Solid fuel, and others.

The trend depicts that the country’s inflationary pressures have continued to accelerate unabated despite the monetary tightening stance of the Central Bank of Nigeria (CBN), which saw the apex bank raising the benchmark lending rate to 13 per cent for the first time since September 2020.

Data released by the National Bureau of Statistics (NBS), on Wednesday, in Abuja showed that the 17.71 per cent inflation rate in May 2022, is the highest rate so far recorded by the economy in the last 11 months.

The NBS in its released Consumer Price Index (CPI), which measures the inflation rate said “On a month-on-month basis, the Headline inflation rate increased to 1.78 per cent in May 2022, this is also 0.02 per cent rate higher than the rate recorded in April 2022 (1.76) per cent.

“The percentage change in the average composite CPI 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 per cent increase compare to the 15.50 per cent recorded in May 2021”.

Also, the NBS explained that in May 2022, the inflation rate increased to 17.71 per cent on a year-on-year basis, indicating 0.22 per cent points lower compared to the rate recorded in May 2021, which is (17.93) per cent, which 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), and noted that increases were recorded in all COICOP divisions that yielded the Headline index.

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According to the NBS, “the urban inflation rate increased to 18.24 per cent (year-on-year); this is a 0.27 per cent 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 twelve-month average percentage change for the urban index is 17.00 per cent in May 2022. This is 0.91 per cent higher compared to 16.09 per cent reported in May 2021.

“The rural inflation rate increased to 17.21 per cent in May 2022 (year-on-year) basis; this is a 0.15 per cent 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 percent from the rate recorded in April 2022 (1.74), while the corresponding twelve-month average percentage change for the rural inflation rate in May 2022 is 15.91 per cent. This is 0.97 percent higher compared to 14.94 percent recorded in May 2021”.

The NBS said the food index on a year-on-year basis rose to 19.50 percent in May 2022, but it declined by 2.78 per cent compared to 22.28 per cent in May 2021.

It attributed the rise in the food index to increases in prices of Bread and cereals, Food products Potatoes, yam, other tubers, Wine, Fish, Meat, and Oils.

On a month-on-month basis, the food sub-index increased to 2.01 per cent in May 2022, up by 0.01 percent points from 2.00 percent recorded in April 2022.

The average annual rate of change of the Food sub-index for the twelve-month period ending May 2022 is 18.68 percent, which is 0.05 percent points decline from the rate recorded in May 2021 (19.18) per cent.

The index for all items less farm produce (Core inflation), stood at 14.90 per cent in May 2022 on a year-on-year basis, up by 1.75 percent when compared to 13.15 percent recorded in May 2021.

On a month-on-month basis, the core sub-index increased to 1.87 per cent in May 2022. This is up by 0.65 percent when compared to 1.22 per cent 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 per cent in May 2022; this is 2.33 percent points higher than11.50 per cent recorded in May 2021

All Items Inflation for the states in May 2022 on a year-on-year basis was highest in Bauchi (20.62 per cent ), Akwa Ibom (20.34 per cent ), and Rivers (19.95 per cent ), while Kwara (15.45 per cent ), Kaduna (15.69 per cent ) and Jigawa (16.15 per cent ) recorded the slowest rise in the headline inflation.

On a month-on-month, May 2022, recorded the highest increases in Bauchi (3.17 per cent ), Bayelsa (2.73 per cent ), and Kogi (2.71%), while Yobe (0.22 per cent ), Jigawa (0.95 per cent ) and Benue (1.07 per cent ) recorded the slowest rise on month-on-month inflation.

Food sub-index Inflation for the states in May 2022, on a year-on-year basis was highest in Kogi (22.79 per cent ), Akwa Ibom (22.47 per cent ), and Kwara (22.21 per cent ), while Kaduna (16.46 per cent ), Anambra (16.54 per cent ) and Jigawa (16.91 per cent ) recorded the slowest rise in food inflation.

On a month-on-month basis, however, in May 2022 food inflation was highest in Rivers (3.65 per cent ), Abia (3.31 per cent ), and Ogun (3.23 per cent ), while Yobe (0.01 per cent ), Osun (0.76 per cent), and Jigawa (0.81 per cent ) recorded the slowest rise in food inflation.

The NBS report comes after the World Bank on Tuesday projected that the current inflationary pressure will push additional one million Nigerians into extreme poverty by the end of this year.

Also, the Bank in its latest Nigeria Development Update (NDU) report, titled, “The continuing urgency of business unusual”, estimated that an additional one million would be added to the six million Nigerians that were already predicted to relapse into poverty this year because of increase in prices, particularly food prices.

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Inflation rate defies all measures, hits 11-month high of 17.71% in May

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