The June 2022 Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) shows that the country’s inflation rate has increased by 0.84 percent.
NBS report shows that the inflation increased to 18.60 percent on a year-on-year basis, which is 0.84 percent points higher compared to the rate recorded in June 2021, which is 17.75 percent.
This means that the headline inflation rate increased in the month of June 2022 when compared to the same month in the previous year (i.e., June 2021).
Recall, the inflation increased to 17.71 percent in May, 2022, from 16.82% recorded in April 2022, indicating a 1.78% increase.
The apex statistical agency for the country in its latest report said, increases were recorded in all COICOP divisions that yielded the Headline index.
The Bureau said, “on a month-on-month basis, the Headline inflation rate increased to 1.82 percent in June 2022, this is 0.03 percent higher than the rate recorded in May 2022 (1.78 percent).
“The percentage change in the average composite CPI for the twelve months period ending June 2022 over the average of the CPI for the previous twelve months period is 16.54 percent, showing a 0.62 percent increase compared to 15.93 percent recorded in June 2021.
“In the month of June 2022, the urban inflation rate increased to 19.09 percent (year-on-year); this is a 0.74 percent increase compared to 18.35 percent recorded in June 2021.
“On a month -on-month basis, the urban inflation rate rose to 1.82 percent in June 2022, this is a 0.01 percent increase compared to May 2022 (1.81 percent).
“The corresponding twelve-month average percentage change for the urban index is 17.09 percent in 2022. This is 0.58 percent higher compared to 16.51 percent reported in June 2021.
“The rural inflation rate increased to 18.13 percent in June 2022 (year-on-year) basis; this is a 0.97 percent increase compared to 17.16 recorded in June 2021.
“On a month-on-month basis, the rural index rose to 1.81 percent in June 2022, up by 0.05 percent from the rate recorded in May 2022 (1.76 percent), while the corresponding twelve-month average percentage change for the rural inflation rate in June 2022 is 16.02 percent.
“This is 0.66 percent higher compared to 15.36 percent recorded in June 2021”, NBS said.
The implication simply is that it would reduce the purchasing power of the naira, increases the expenditure of Nigerians, and puts more pressure on savings.
Additionally, it would lower consumption since the naira value can not afford to buy much quantity given that wages and salaries are constant.
