Nigeria’s Inflation Rises to 22.41 Percent In May On Higher Food Prices

Nigeria’s inflation rate rose from 22.22 percent in April to a new height of 22.41 percent in May 2023, according data from the National Bureau of Statistics (NBS).

According to the statistics bureau, the May 2023 inflation rate showed an increase of 0.19 percentage points when compared to April 2023 headline inflation rate.

Similarly, on a year-on-year basis, the headline inflation rate was 4.70 percentage points higher compared to the rate recorded in May 2022, which was 17.71 percent.

That shows that the headline inflation rate (year-on-year basis) increased in the month of May 2023 when compared to the same month in the preceding year (i.e., May 2022).

On a month-on-month basis, the headline inflation rate in May 2023 was 1.94 percent, which was 0.03 percent higher than the rate recorded in April 2023 (1.91 percent). This means that in the month of May 2023, on the average, the general price level was 0.03 percent higher relative to April 2023.

The percentage change in the average CPI for the 12-month period ending May 2023
over the average of the CPI for the previous 12-month period was 21.20 percent, showing 4.75 percent increase compared to 16.45 percent recorded in May 2022.

On a year-on-year basis, in the month of May 2023, the Urban inflation rate was 23.74%, 5.50% point higher compared to the 18.24% recorded in May 2022. On a month-on-month basis, the Urban inflation rate was 2.09% in May 2023, 0.05% points higher compared to April 2023 (2.05%).

The corresponding twelve-month average for the Urban inflation rate was 21.95% in May 2023. This was 4.95% points higher compared to the 17.00% reported in May 2022.

Rural inflation rate in May 2023 was 21.19% on a year-on-year basis; this was 3.98% higher compared to the 17.21% recorded in May 2022. On a month-on-month basis, the rural inflation rate in May 2023 was 1.80%, up slightly by 0.02% points compared to April 2023 (1.78%).

The corresponding twelve-months average for the Rural inflation rate in May 2023 was 20.50%. This was 4.59% higher compared to the 15.91% recorded in May 2022.

The food inflation rate in May 2023 was 24.82% on a year-on-year basis; which was 5.33% points higher compared to the rate recorded in May 2022 (19.50%). The rise in the food inflation on year-on-year basis was caused by increases in prices of oil and fat, yam and other tubers, bread and cereals, fish, potatoes, fruits, meat, vegetable, spirit.

On a month-on-month basis, the Food inflation rate in May 2023 was 2.19%, this was 0.06% higher compared to the rate recorded in April 2023 (2.13%).

The average annual rate of food inflation for the twelve-months ending May 2023 over the previous 12-month average was 23.65%, which was 4.97 % points increase from the average annual rate of change recorded in May 2022 (18.68%).