Nigeria’s economy continues to witness a surge in its inflation rate, as it records a consecutive monthly surge to 18.60 percent in June 2022, from May’s 17.71 percent. This signifies a 0.9 percent rise rate in the month-on-month basis, within the space of May and June 2022. Based on the year-on-year analysis, this illustrates a 0.84 percent point rise, higher than the recorded rate of 17.75 percent of June 2021, the peak since January 2017.
The National Bureau of Statistics (NBS) confirmed this on Friday, during its release of its consumer price index (CPI) report that tracks the recurrent prices of the consumer goods and services as purchased by Nigerians. This surge in inflation rate has led to a huge rise in the prices of food and other expenditures in the country and it evidently reflects the government’s incapability at maintaining a stable economic progression and salvaging the surge in the country’s cost of living.
Every classification of individual consumption witnessed an increase.
Dr. Muda Yusuf, founder and Chief Executive Officer of Centre for the Promotion of Private Enterprise (CPPE), in reaction to the insistent surge in inflation rates in the country averred that high energy cost is an important driver of inflation in the country. he further solicited that the government must fix this situation by immediately placing a hold on every form of levies and taxes that is imposed on the importation of petroleum products so as to imminently cause a relief on the high cost of energy.
Reports indicates that basically every classification of individual consumptions ranging from food, transportation and other basic needs witnessed an increase according to purpose (COICOP) divisions which subsequently generated the index indicated in the headline. According to the report, the inflation rate witnessed an increase of 1.82 percent on a month-on-month basis in June 2022. Reports further stated that the change in percentage in the average composite consumer price index of the 12 months that ends in June 2022 over that of the previous year is 16.54, displaying a 0.62 increase.
Food Inflation immensely affected the cost of living of most citizens.
According to the report, food inflation increased by about 20.60 percent in June 2021, on the year-on-year basis. However, the percentage of average price level experienced a change which inclined at about 1.23 percent, when equated to the 21.83 percent of June 2022. This increase is reported to have immensely affected the cost of living of most citizens with the minimum wage not increasing to suit the inflation in consumer prices. It has become herculean for the average citizens to have a purchasing power over basic needs due to this recurrent inflation.
The report went further in explaining that the degree of changes in the prices of food when compared to the same period last year was evidently higher as a result of the difficult food price instability that was shaped by the Covid-19 pandemic. It added that the hike in food index was as a result of the rapid increase in the prices of bread, cereal and food products such as potatoes, meat, oil and wine. The food sub-index, on a month-on-month basis increased to 2.05 percent in June 2022, compared to May’s 2.01 percent.
The prices of food consumed by most families have significantly increased.
June 2022 however saw all items inflate higher in the year-on-year basis in states like Bauchi (21.99%), Kogi (21.37%), Ebonyi (20.37%), while states like Sokoto (16.31%) and Jigawa (16.37%) recorded a measured rise in the headline year-in-year inflation. The charges of goods consumed by numerous families have increased significantly by 30 to 100 percent over the past year. Due to this surge in inflation rate, numerous citizens no longer have the purchasing power over their basic needs, incomes are being miserable and the poverty level has worsened.
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