Abdulwahab Isa 
The headline inflation continues to defile monetary policy tightening measures of the Central Bank of Nigeria ( CBN), rising to 24.08 percent in July against the previous month – June figure of 22.79 percent, the National Bureau of Statistics ( NBS) confirmed on Tuesday.
Comparing the June figure to the latest July inflation figure of 24.08 percent
showed an increase of 1.29% points when compared to the June 2023 headline inflation rate, NBS said.
From last year till the 2023 fiscal year, Nigeria, Africa’s biggest economy is confronted by acute inflationary pressure and a weakening national currency. The development pushes the cost of goods and services higher above the capacity of Nigerians.
The apex bank last month responded by adjusting higher, its anchor lending rate( MPR ) by 25 basis points, from 18.50 to 18.75, and approved for adjustment, asymmetric corridor to +100/-300 basis points around the MPR from the previous corridor of +100/-700 basis points at the last Monetary Policy Committee (MPC) in July. CBN’s action was, to deal with excess liquidity in the system.
NBS noted in its latest report: “In July 2023, the headline inflation rate rose to 24.08 per cent relative to June 2023 headline inflation rate which was 22.79 per cent.
“Looking at the movement, the July 2023 headline inflation rate showed an increase of 1.29 per cent points when compared to June 2023 headline inflation rate.
“On a year-on-year basis, the headline inflation rate was 4.44 per cent points higher compared to the rate recorded in July 2022, which was 19.64 per cent. This shows that the headline inflation rate (year-on-year basis) increased in July 2023 when compared to the same month in the preceding year (i.e., July 2022).”
According to NBS, the food inflation rate in July 2023 was 26.98% on a year-on-year basis, which was 4.97% points higher compared to the rate recorded in July 2022 (22.02%).
The rise in Food inflation on a year-on-year basis was caused by increases in prices of Oil and fat, Bread and cereals, Fish, Potatoes, Yam and other tubers, Fruits, Meat, Vegetable, Milk, Cheese, and
Eggs.
On a month-on-month basis, the food inflation rate in July 2023 was 3.45%, indicating 1.06% higher compared to the rate recorded in June 2023 (2.40%).
“The rise in food inflation on a month-on-month basis was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Fish, Oil, and Fat.
“The average annual rate of Food inflation for the twelve-month ending July 2023 over the previous twelve-month average was 24.46%, which was a 5.71% points increase from the average annual rate of change recorded in July 2022 (18.75%).
“The Bureau explained that core inflation, which excludes the prices of volatile agricultural produces and energy stood at 20.47% in July 2023 on a year-on-year basis up by 4.41% when compared to the 16.06% recorded in July 2022.
” The highest increases were recorded in prices of passenger transport by air, passenger transport by road, vehicle spare parts, medical services, maintenance and repair of personal transport equipment, etc.
” On a month-on-month basis, the Core Inflation rate was 2.11% in July 2023, up by 0.34% points from 1.77% in June 2023. The average twelve-month annual inflation rate was 18.84% for the twelve-month ending July 2023; this was 4.31% points higher than the 14.53% recorded in July 2022″.
Inflation varies across states, according to NBS. For instance, all items inflation rate on a year-on-year basis was highest in Kogi (28.45%), Lagos (27.30%), Ondo (26.83%), while Borno (20.71%), Jigawa (20.85%) and Sokoto (20.92%) recorded the slowest rise in headline inflation on a year-on-year basis.
On a month-on-month basis, the highest increases were recorded in Kogi (4.99%), Abia (4.12%), Akwa Ibom (4.07%), while Jigawa (0.16%), Taraba (1.09%) and Yobe (1.10%) recorded the slowest rise in month-on-month inflation.
On food inflation on a year-on-year basis, the highest was Kogi (34.53%), Lagos (32.52%), and Bayelsa (31.31%), while Jigawa (20.90%), Sokoto (21.63%) and Kebbi (22.45%) recorded the slowest rise in Food inflation on a year-on-year basis.
“On a month-on-month basis July 2023, food inflation was highest in Kogi (6.73%), Akwa Ibom (5.64%), and Bayelsa (4.59%), while Taraba (-0.21%), Jigawa (0.28%), and Yobe (0.90%) recorded the slowest rise in inflation on a month-on-month basis.
