Nigeria annual inflation jump biggest in 7 years after subsidy removal

Nigeria’s inflation rose to its highest level in at least 18 years in July, two months after the government scrapped fuel subsidy.

Inflation is the rate at which prices change within a period.

In the last one year to July, inflation rose 24.08% compared to 22.79% in June, leaving the widest annual gap in at least seven years.

Annual inflation gap between two months peaked at 0.48 percentage points in the last seven years.

But the gap between July and June was 1.29 percentage points, an indication prices were significantly impacted after the government removed petrol subsidy and devalued the naira.

“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,” the National Bureau of Statistics said in a report Tuesday.

– Food inflation too

The bureau had said in June that its inflation report for that month did not entirely reflect the impact of the removal of subsidy, which took effect May 30.

In the latest report, food inflation rose to 26.98% in July from a year ago, compared to 25.25% from June.

“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,” it said.

Prices rose at the fastest pace in Kogi, Lagos, and Ondo states and was slowest in Borno, Jigawa and Sokoto.