In May 2022, the inflation rate increased to 17.71 percent on a year-on-year basis. This is 0.22 percent points lower compared to the rate recorded in May 2021, which is (17.93) percent. 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 percent in May 2022, this is also 0.02 percent rate higher than the rate recorded in April 2022 (1.76) percent. 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 percent, showing a 0.95 percent increase compare to the 15.50 percent recorded in May 2021.
The urban inflation rate increased to 18.24 percent (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 percent 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 index 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) percent.
All Items Less Farm Produce
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 basis, 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 recorded 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.
In analysing price movements under this section, it should be noted that CPI is weighted by consumption expenditure patterns which differ across states and locations. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.
All Items Inflation
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 monthon-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-onmonth 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.