Kayode Ogunwale

 

In July 2023, the headline inflation rate rose to 24.08% relative to June 2023 headline inflation rate which was 22.79%. Looking at the movement, the July 2023 headline inflation rate showed an increase of 1.29% points when compared to June 2023 headline inflation rate.

On a year-on-year basis, the headline inflation rate was 4.44% points higher compared to the rate recorded in July 2022, which was 19.64%. This shows that the headline inflation rate (year -on-year basis) increased in July 2023 when compared to the same month in the preceding year (i.e., July 2022).

In addition, on a month-on-month basis, the headline inflation rate in July 2023 was 2.89%, which was 0.76% higher than the rate recorded in June 2023 (2.13%). This means that in July 2023, on average, the general price level was 0.76% higher relative to June 2023.

The percentage change in the average CPI for the twelve-month period ending July 2023 over the average of the CPI for the previous twelve-month period was 21.92%, showing a 5.17% increase compared to 16.75% recorded in July 2022.

 

URBAN INFLATION

On a year-on-year basis, in July 2023, the Urban inflation rate was 25.83%, this was 5.74% points higher compared to the 20.09% recorded in July 2022. On a month-on-month basis, the Urban inflation rate was 3.05% in July 2023, this was 0.75% points higher compared to June 2023 (2.31%). The corresponding twelve-month average for the Urban inflation rate was 22.87% in July 2023. This was 5.59% points higher compared to the 17.29% reported in July 2022.

 

RURAL INFLATION

The Rural inflation rate in July 2023 was 22.49% on a year-on-year basis; this was 3.26% higher compared to the 19.22% recorded in July 2022. On a month-on-month basis, the Rural inflation rate in July 2023 was 2.74%, up by 0.78% points compared to June 2023 (1.96%). The corresponding twelve-month average for the Rural inflation rate in July 2023 was 21.04%. This was 4.79% higher compared to the 16.25% recorded in July 2022.

The Food inflation rate in July 2023 was 26.98% on a year-on-year basis, which was 4.97% points higher compared to the rate recorded in July 2022 (22.02%). The rise in Food inflation on a year-on-year basis was caused by increases in prices of Oil and fat, Bread and cereals, Fish, Potatoes, Yam and other tubers, Fruits, Meat, Vegetable, Milk, Cheese, and Eggs.

On a month-on-month basis, the Food inflation rate in July 2023 was 3.45%, this was 1.06% higher compared to the rate recorded in June 2023 (2.40%). The rise in Food inflation on a month-on-month basis was caused by increases in prices of Bread and cereals,

Potatoes, Yam and other tubers, Fish, Oil, and Fat. The average annual rate of Food inflation for the twelve-month ending July 2023 over the previous twelve-month average was 24.46%, which was a 5.71% points increase from the average annual rate of change recorded in July 2022 (18.75%).

The “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 20.47% in July 2023 on a year-on-year basis; up by 4.41% when compared to the 16.06% recorded in July 2022. The highest increases were recorded in prices of Passenger Transport by Air, Passenger Transport by Road, Vehicle Spare Parts, Medical Services, Maintenance, and repair of personal transport equipment etc. On a month-on-month basis, the Core Inflation rate was 2.11% in July 2023, up by 0.34% points from 1.77% in June 2023. The average twelve-month annual inflation rate was 18.84% for the twelve-month ending July 2023; this was 4.31% points higher than the 14.53% recorded in July 2022.