*The National Bureau of Statistics explains the rise in the Food Index June 2022 was caused by increases in prices of bread and cereals, food products, potatoes, yam, and other tubers, meat, fish, oil and fat, and wine

*Inflation rate impact on consumers鈥� welfare is inestimable, says Dr. Muda Yusuf, Founder/CEO of CPPE

Isola Moses | 绿帽献妻

Nigeria鈥檚 recent inflation rate, which recorded a seventh consecutive monthly rise to 18.60 percent June 2022 has continued to generate reactions among experts and consumers of products and services in the economy.

This latest figure represents a 0.9 percent point rise from the 17.71 percent recorded May this year.

The NBS figure released聽 for June is also 0.84 percent points higher, compared to the previous month’s.

This rate is regarded as the highest since January 2017.

绿帽献妻 reports the National Bureau of Statistics (NBS) revealed this development in its Consumer Price Index (CPI) report for June 2022, released Friday, July 15.

Accordingly, in his reaction to the persistent rise in inflation rate in the country’s economy, Dr. Muda Yusuf, Founder/Chief Executive Officer (CEO), Centre for the Promotion of Private Enterprise (CPPE), stated that one of the major drivers of inflation is high energy costs.

Yusuf suggested the Nigerian Government, as a matter of urgency, should suspend all forms of taxes and levies on the importation of petroleum products to give a respite on the spiking energy cost.

The NBS, in the report, also noted that increases were recorded in all classifications of individual consumption according to purpose (COICOP) divisions that yielded the headline index.

It stated: 鈥淥n 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).

Consumer shopping in a supermarket

鈥淭he percentage change in the average composite CPI for the 12 months ending June 2022 over the average of the CPI for the previous 12 months period is 16.54 percent, showing a 0.62 percent increase compared to 15.93 percent recorded in June 2021.鈥�

The report as well indicated that food inflation rose to 20.60 percent June 2022 on a year-on-year basis, but the rate of changes in average price level declined by 1.23 percent, compared to 21.83 percent June 2021.

The report further explained that the rate of changes in food prices compared to the same period last year was higher due to higher food prices volatility caused by COVID-19.

The NBS further noted: 鈥淭his rise in the Food Index was caused by increases in prices of bread and cereals, food products… potatoes, yam, and other tubers, meat, fish, oil and fat, and wine.

鈥淥n a month-on-month basis, the food sub-index increased to 2.05 percent in June 2022, up by 0.03 percent from 2.01 percent recorded in May 2022.鈥�

In analysing price movements for states, the report said Bauchi and Kogi states were the highest.

鈥淚n June 2022, all items inflation on a year-on-year basis was highest in Bauchi (21.99 percent), Kogi (21.37 percent), Ebonyi (20.73 percent) while Adamawa (16.14 percent), Sokoto (16.31 percent) and Jigawa (16.37 percent) recorded the slowest rise in headline year-on-year inflation,鈥� the report stated.

Impact on consumers鈥� welfare is inestimable, says Yusuf

Dr. Yusuf also said for the basket of goods consumed by most households, prices have jumped by between 30 percent and 100 percent over the past one year, The Guardian report said.

The expert noted: 鈥淭he same is true of businesses.

“The spiralling inflation dynamics demands an urgent policy response at the highest level of government.

“The impact on citizens鈥� welfare is inestimable.”

He as well submitted that the “pressure of spiking inflation on household budgets has been excruciating and unbearable.鈥�

Yusuf added: 鈥淧urchasing power has been massively eroded, real incomes have been depressed, and the poverty incidence has consequently worsened. “The effect on SMEs is troubling.鈥�

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