New Telegraph 
Following yesterday’s report by the National Bureau of Statistics (NBC) that consumer price index (CPI) rose to 22.79 per cent in June 2023, up from 22.41 per cent in the previous month, members of the Organised Private Sector (OPS) have stated that the marginal 0.38 per cent is pointer to key policy changes in the country under President Bola Tinubu’s administration. The Director-General of Manufacturers Association Ajayi-Kadir, and a former President, Lagos Chamber of Commerce and Industry (LCCI), Mr. Babatunde Ruwase, made this known to New Telegraph in Lagos while commenting on the June headline inflation.
Ajayi-Kadir explained that the movement for June 2023 headline inflation rate showing an increase of 22.79 per cent or 0.38 per cent points compared to May 2023 headline inflation rate of 22.41 indicated that desired stability was coming into the country’s economy gradually. NBS’s report showed that increases in prices were recorded in oil and fat, bread and cereals, fish, potatoes, yam and other tubers , fruits, meat, vegetable, milk, cheese, and eggs.
“The food inflation rate in June 2023 was 25.25 per cent on a year-on-year basis; this was 4.65 per cent points higher relative to the rate recorded in June 2022 (20.60%). 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 June 2023 was 2.40 per cent, this was 0.21 per cent points higher compared to the rate recorded in May 2023 (2.19%). “The average annual rate of Food inflation for the 12 months, ending June 2023 over the previous 22 months’ average was 24.03 per cent, this was 5.41 per cent points increase from the average annual rate of change recorded in June 2022 (18.62%),” NBS explained.
Inflation on a year-on-year basis, according to NBS, was 4.19 per cent points higher compared to the rate recorded in June 2022, which was 18.60. per cent. This, it said, showed that the Headline inflation rate (year-on-year basis) increased in June 2023 when compared to the same month in the preceding year (June 2022).
Relatedly too, Urban inflation rate in June 2023 was 24.33 per cent. The figure was 5.23 per cent points higher compared to the 19.09 per cent recorded in June 2022. According to Ajayi- Kadir, MAN and other OPS members have been telling the previous government the strategies to take to tackle rising headline inflation.
According to him, the June headline inflation rate of 22.79, an increase of 0.38 per cent, is also an indication that the country’s economy is on the path of positive trajectory. Ajayi-Kadir said: “Our thoughts in MAN is that we think the fuel subsidy removal and the floating of the naira exchange rate will come with burdens, inflationary impact on the economy since we are used to high rising rates in the country.”
“We are very glad for this 0.38 per cent points. It shows that this current administration has been consistent about turning around the economy positively, based on the far reaching decisions taken so far, including declaring a state of emergency on food security and identified measures to check food inflation and guarantee price stability in the country,” the MAN DG added. On his part, Ruwase noted that a further skyrocketing inflation rate could have been catastrophic for the country’s fragile economy, especially for Nigerians and businesses.
