Nigeria Inflation for July 2022

The continuous rise in inflation in the Nigerian economy since the beginning of this year has become a source of worry to every person living in the country. On a year-on-year basis in the month of July, the headline inflation rate increased to 19.64 per cent from 18.60 per cent recorded in the month of June this year. This is also higher than 17.38 per cent in the same month in 2021. By implication, the general price level rose by 1.04 per cent and 2.26 per cent higher than in June 2022 and July 2021 respectively.

The continuous rise in inflation in the Nigerian economy since the beginning of this year has become a source of worry to every person living in the country. On a year-on-year basis in the month of July, the headline inflation rate increased to 19.64 per cent from 18.60 per cent recorded in the month of June this year. This is also higher than 17.38 per cent in the same month in 2021. By implication, the general price level rose by 1.04 per cent and 2.26 per cent higher than in June 2022 and July 2021 respectively. On a month by monthly basis, the inflation rate increased by approximately the same rate as it did in the month of June 2022. The rate of increase of the headline inflation rate was 1.82 per cent in July 2022.

 

In both the urban and the rural areas, the increase in year-on-year inflation rate was significant. The urban centre recorded 20.09 percent in inflation rate in July. This is 2.08 per cent higher than 18.01 per cent recorded in the same month in 2021 and 1.0 per cent higher than 19.09 recorded in June 2022. On the monthly basis, the change in inflation was about the same figure (1.82 per cent) recorded in the month of June 2022. The rural are also moved from 16.75 per cent recorded in July 2021 and 18.13 per cent in June 2022 to 19.22 per cent year-on-year in July 2022. These amount to 2.47 per cent and 1.09 per cent in the two periods, respectively. Like the urban centre, the monthly inflation rate increased at the same rate in did in the previous month of June 2022.

The Nigerian inflation is increasing in all angles, there are significant rises in both food and core inflation rates. The food inflation rate rose to 22.02 per cent on a year-on-year basis in the month of July compared to 21.03 per cent in the same month in 2021 and 20.60 per cent in June 2022. The rise in food inflation on a month-on-month basis in the July is 2.04 per cent, this was an insignificant decline from 2.05 recorded in the month of June 2022. The National Bureau of Statistics (NBS) recorded that the decline in This decline in the prices of some food items such as tubers, maize, garri, vegetables, were instrumental to insignificant reduction in food inflation in the month under review.

 

The core inflation rate which excludes the prices of food items also recorded increases. On a year-on-year basis, the increases in the prices of Gas, Liquid fuel, Solid fuel, Passenger transport by road, Passenger transport by Air, Garments, Cleaning, Repair and Hire of clothing caused a significant increase in inflation rate from 13.72 per cent in July 2021 and 15.75 per cent in June 2022 to 16.26 per cent in the month of July 2022. The monthly inflation rate in July was 1.75 per cent and this figure was higher than 1.56 per cent in the month of June 2022.

 

The rate of inflation in Nigeria has assumed an alarming dimension. There is no month past without an increase in the rate of inflation. With these increases, the purchasing power of consumers is also declining, and this eventually would affect the sales and revenue of manufacturers. It is important that while manufacturers rethink to sources of their raw materials locally, they also should resize their products to packages that are affordable to consumers.