The National Bureau of Statistics (NBS) has reported that Nigeria’s annual inflation rate rose for the fifth consecutive month in May 2023 to 22.41 percent from 22.22 percent recorded in April, occasioned by an increase in food prices.
This is contained in the latest inflation report released by the NBS on Thursday, which stated that the food inflation rate rose to 24.82 percent in May from 24.61 percent in the previous month.
The NBS said, “Looking at the movement, the May 2023 inflation rate showed an increase of 0.19 percent points when compared to April 2023 headline inflation rate.
“Similarly, on a year-on-year basis, the headline inflation rate was 4.70 percent points higher compared to the rate recorded in May 2022, which was (17.71 percent)”.
According to the NBS report, food & non-alcoholic beverages contributed most to the acceleration in the headline inflation with 11.61 percent, followed by Housing, Water, Electricity, Gas & Other Fuel, 3.75 percent, Clothing & Footwear, 1.71 percent, and Transport at 1.46 percent.
Other contributors to the rising inflation rate are Furnishings and Household Equipment & Maintenance, 1.13 percent; Education, 0.88 percent; Health, 0.67 percent; Miscellaneous Goods & Services, 0.37 percent; Restaurant & Hotels, 0.27 percent; Alcoholic Beverage, Tobacco & Kola, 0.24 percent; Recreation & Culture 0.15 percent and Communication, 0.15 percent.
Analysts say the rise in inflation rate in May is not unconnected with President Bola Tinubu’s inaugural address last month announcing the removal of fuel subsidy, which led to the Nigerian National Petroleum Company Limited (NNPCL) directing its outlets nationwide to sell fuel for between N480 and N570 per litre, about 200 percent increase from the initial price.
The NNPCL’s action immediately triggered sharp increases in transportation fares; prices of goods and services went up by various percentages all over the country.
However, in a deft move to tame the hydra-headed inflationary pressures in the country, the Central Bank of Nigeria (CBN), in May 2023, increased the benchmark interest rate to 18.5 percent.
NREAD ALSO FROM NIGERIAN TRIBUNE
Dr AyoOluwa Idowu, a consultant radiologist with a bias for breast cancer imaging…
Erectile dysfunction is a significant health issue affecting millions of men…
Tunde and Musa work in a department where the new Head (Mr Ojo)…
The video captured the moment the Ooni arrived, prompting other monarchs to rise and exchange…
IN the modern world where challenges like hunger, poverty, unemployment, and insecurity continue…
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, during a recent meeting…
This website uses cookies.