Nigeria’s inflation is getting worse. The National Bureau of Statistics revealed in its Consumer Price Index June 2022 report that inflation rate in the month of June 2022 increased to 18.60 percent from 17.71 percent of May in the second quarter of the year. It also disclosed that food inflation rate is 20.60 percent while urban inflation rate stands at 19.09 percent.
The report also revealed that “in the month of June 2022, the urban inflation rate increased to 19.09 per cent (year-on-year); this is a 0.74 per cent increase compared to 18.35 per cent recorded in June 2021. It also said that on a month-on-month basis, the urban inflation rate rose to 1.82 per cent in June 2022, this is a 0.01 per cent increase compared to May 2022 (1.81 per cent).”
“The composite food index experienced a similar increase rising to 20.60 per cent in June 2022 on a year-on-year basis; the rate of changes in average price level declined by 1.23 per cent compared to 21.83 per cent in June 2021. The rate of changes in food prices compared to the same period last year was higher due to higher foods prices volatility caused by COVID 19. This rise in the food index was caused by increases in the prices of Bread and cereals, Food products n.e.c, Potatoes, yam, and other tubers, Meat, Fish, Oil and fat, and Wine. On a month-on-month basis, the food sub-index increased to 2.05 per cent in June 2022, up by 0.03 per cent points from 2.01 per cent recorded in May 2022.”
With sharp surge in the inflation rate, the Central Bank of Nigeria (CBN) will employ it’s monetary policy tool to tame the rising inflation. In this case CBN may likely jack up the interest rate to combat the rising inflation. The interest rate is at 13 percent and further increase may do more harm than good,
Nigerians may not believed these numbers because they never trusted their government nor do they believe that the government is working on their interest or behalf. One thing they know for sure is that goods and services are beyond their reach.