Yearly inflation in Nigeria, Africa's largest economy, rose sharply in July on the back of soaring energy, transport, and food costs, associated with a fall in the value of the Naira currency. Rising food costs and Naira's weakness against the dollar push rate of price growth to 19.6%. According to the National Bureau of Statistics (NBS), July inflation rose for the sixth consecutive month this year to 19.6, up from 18.6 per cent in June and the highest level since September 2005. The latest rise means inflation is now double the Central Bank of Nigeria's target of 9 per cent and raises the prospect of another increase in interest rates next month. The statistics agency pointed to an increase in the price of gas and fuel, as well as air and road transport costs, along with food prices. Food inflation rose to 22 per cent caused by an increase in the cost of bread and cereals, as well as other food products such as potatoes, yam, meat, fish, oil, and fat.
The NBS report in its Consumer's Price Index, CPI, for July also said food inflation rose to 22.02 per cent from 20.6 per cent in June.
"CPI for July 2022 was 463.6 relative to 387.5 in July 2021. In July 2022, on a year-on-year basis, the headline inflation rate was 19.64 per cent. This was 2.27 per cent points higher compared to the rate recorded in July 2021, which was (17.38 per cent)," the Bureau said.
"This shows that the headline inflation rate increased in the month of July 2022 when compared to the same month in the previous year (i.e. July 2021).
"This means that in the month of July 2022 the general price level was 2.26 per cent higher than in July 2021."
On Food inflation, the Bureau stated thus: "The food inflation rate in July 2022 was 22.02 per cent on a year-on-year basis; which was 0.99 per cent higher compared to the rate recorded in July 2021 (21.03 per cent).
Analysts are still projecting a further rise in the months ahead due to spending associated with the 2023 general elections.