National Bureau of Statistics has said that in May 2022, the inflation rate increased to 17.71 per cent on a year-on-year basis. According to the report, “headline inflation rate rose to 17.7% y/y (previously 16.8% y/y) the highest level since June 2021. This is attributed to increases in both core and food inflation subcomponents, that rose 72bps and 113 bps y/y respectively to 14.9% and 19.5%. This is 0.22 per cent points lower compared to the rate recorded in May 2021, which is (17.93) per cent. This means that the headline inflation rate slowed down in the month of May when compared to the same month in the previous year (i.e. the year 2021). Increases were recorded in all COICOP divisions that yielded the Headline index. On a month-on-month basis, the Headline inflation rate increased to 1.78 per cent in May 2022, this is also 0.02 per cent rate higher than the rate recorded in April 2022 (1.76) per cent. The percentage change in the average composite CPI for the twelve months period ending May 2022 over the average of the CPI for the previous twelve months period is 16.45 per cent, showing a 0.95 percent increase compare to the 15.50 percent recorded in May 2021.
“The urban inflation rate increased to 18.24 per cent (year-on-year); this is a 0.27 percent decline compared to 18.51 percent recorded in May 2021. On a month-on-month basis, the urban inflation rate rose to 1.81 percent in May 2022, this is a 0.03 percent increase compared to April 2022 (1.78). The corresponding twelve-month average percentage change for the urban index is 17.00 percent in May 2022. This is 0.91 per cent higher compared to 16.09 percent reported in May 2021. The rural inflation rate increased to 17.21 percent in May 2022 (year-on-year) basis; this is a 0.15 percent decline compared to 17.36 recorded in May 2021. On a month-on-month basis, the rural index rose to 1.76 percent in May 2022, up by 0.02 percent from the rate recorded in April 2022 (1.74), while the corresponding twelve-month average percentage change for the rural inflation rate in May 2022 is 15.91 percent. This is 0.97 percent higher compared to 14.94 percent recorded in May 2021.
“The composite food index rose to 19.50 percent in May 2022 on a year-on-year basis; it declined by 2.78 percent compared to 22.28 percent in May 2021. This rise in the food in- dex was caused by increases in prices of Bread and cereals, Food products n.e.c, Potatoes, yam, and other tubers, Wine, Fish, Meat, and Oils. On a month-on-month basis, the food sub-index increased to 2.01percent in May 2022, up by 0.01 percent points from 2.00 percent recorded in April 2022. The average annual rate of change of the Food sub-index for the twelve-month period ending May 2022 over the previous twelve-month average is 18.68 percent, 0.05 percent points decline from the average annual rate of change recorded in May 2021 (19.18) per- cent.
“The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 14.90 percent in May 2022 on a year-on-year basis, up by 1.75 percent when compared to 13.15 percent recorded in May 2021. On a month-on-month ba- sis, the core sub-index increased to 1.87 percent in May 2022. This is up by 0.65 percent when compared to 1.22 percent recorded in April 2022. The highest increases were record- ed in prices of Gas, Liquid fuel, Garment, Solid fuel, Cleaning, Repair and Hire of clothing and Passenger transport by road. The average 12-month annual rate of change of the index was 13.83 percent for the twelve-month period ending May 2022; this is 2.33 percent points higher than 11.50 percent recorded in May 2021.
According to NBS “in May 2022, all items inflation on a year-on-year basis was highest in Bauchi (20.62%), Akwa Ibom (20.34%), and Rivers (19.95%), while Kwara (15.45%), Kaduna (15.69%) and Jigaawa (16.15%) recorded the slowest rise in headline Year on Year inflation. On a month- on-month basis, however, May 2022, recorded the highest increases in Bauchi (3.17%), Bayelsa (2.73%), and Kogi (2.71%), while Yobe (0.22%), Jigawa (0.95%) and Benue (1.07%) recorded the slowest rise on month-on-month inflation. Inflation In May 2022, food inflation on a year-on-year basis was highest in Kogi (22.79%), Akwa Ibom (22.47%) and Kwara (22.21%), while Kaduna (16.46%), Anambra (16.54%) and Jigawa (16.91%) recorded the slowest rise in year-on-year food inflation. On a month-on- month basis, however, in May 2022 food inflation was highest in Rivers (3.65%), Abia (3.31%), and Ogun (3.23%), while Yobe (0.01%), Osun (0.76%), and Jigawa (0.81%) recorded the slowest rise on month-on-month inflation
