Nigeria’s April inflation rate increased to 22.22 percent on Monday, up from 22.04 percent the previous month.
This was revealed in the National Bureau of Statistics Consumer Price Index report, which was released on Monday.
The data represented a 0.18 percent increase over the previous month’s inflation figure.
Month on month, the All-Items Index in April 2023 was 1.91%, 0.05% higher than the rate in March 2023 (1.86%). This means that, on average, the general price level in April 2023 was 0.05% higher than in March 2023.
Despite multiple interest rate hikes by the central bank to tame the rising rate, Nigeria’s inflation rate remains on the rise. Between 2011 and 2013, the CBN raised the Monetary Policy Rate (MPR) from 11.5% to 18%
Last May and March 2023.
Inflationary pressures on food
The year-on-year food inflation rate in April 2023 was 24.61%, 6.24% higher than the rate recorded in April 2022 (18.37%) and 24.35% recorded the previous month
Food inflation was caused by price increases in oil and fat, bread and cereals, fish, potatoes, yams and other tubers, fruits, meat, vegetables, and spirits.
On a year-on-year basis, “All items less farm produce” or Core inflation, which excludes volatile agricultural produce prices, stood at 20.14% in April 2023. It increased by 5.96% compared to the 14.18% recorded in April 2022. It also exceeds the 19.86% recorded in March 2023.
More inflationary factors
Prices for gas, air travel, liquid fuel, vehicle spare parts, fuels and lubricants for personal transport equipment, medical services, and road transportation increased the most.
Food and non-alcoholic beverages (11.51%), housing water, electricity, gas, and other fuel (3.72%), clothing and footwear (1.7%), and transportation (1.45%) all contributed to the increase in the headline index.
Inflation in the state
During the month under review, the year-on-year inflation rate for all items was highest in Bayelsa (26.14%), Kogi (25.57%), and Rivers (24.95%). On the other hand, Borno (19.06%), Taraba (19.64%), and Sokoto (19.90%) had the slowest year-on-year rise in headline inflation.
On a monthly basis, however, April 2023 had the highest.
Cross River (3.05%), Bayelsa (2.92%), and Rivers (2.62%) saw the fastest growth, while Katsina (0.52%), Jigawa (0.74%), and Osun (0.96%) saw the slowest.
Food inflation was highest in Kogi (29.50%), Kwara (29.48%), and Bayelsa (29.38%), with the slowest increases in Sokoto (19.55%), Taraba (20.20%), and Jigawa (20.68%).
Implication
The continued rise in inflation indicates that the Central Bank of Nigeria’s measures have yet to bear fruit.
It means that Nigerians will continue to pay higher prices for goods, resulting in a decrease in purchasing power.
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