Inflation Increases by 22.41% YoY in May 2023 as Food Inflation Rises by 24.82%

All Items Index

In May 2023, the headline inflation rate increased to 22.41% relative to April 2023 headline inflation rate which was 22.22%. Looking at the movement, the May 2023 inflation rate showed an increase of 0.19% points when compared to April 2023 headline inflation rate. 

Similarly, on a year-on-year basis, the headline inflation rate was 4.70% points higher compared to the rate recorded in May 2022, which was (17.71%). This shows that the headline inflation rate (year-on-year basis) increased in the month of May 2023 when compared to the same month in the preceding year (i.e., May 2022). 

The contributions of items on the divisional level to the acceleration in the Headline index are presented

Likewise, on a month-on-month basis, the headline inflation rate in May 2023 was 1.94%, which was 0.03% higher than the rate recorded in April 2023 (1.91%). This means that in the month of May 2023, on the average, the general price level was 0.03% higher relative to April 2023.

The percentage change in the average CPI for the twelve months period ending May 2023 over the average of the CPI for the previous twelve months period was 21.20%, showing 4.75% increase compared to 16.45% recorded in May 2022.

Urban Inflation 

On a year-on-year basis, in the month of May 2023, the Urban inflation rate was 23.74%, this was 5.50% point higher compared to the 18.24% recorded in May 2022. On a month-onmonth basis, the Urban inflation rate was 2.09% in May 2023, this was 0.05% points higher compared to April 2023 (2.05%). The corresponding twelve-month average for the Urban inflation rate was 21.95% in May 2023. This was 4.95% points higher compared to the 17.00% reported in May 2022.

Rural Inflation 

The Rural inflation rate in May 2023 was 21.19% on a year-on-year basis; this was 3.98% higher compared to the 17.21% recorded in May 2022. On a month-on-month basis, the Rural inflation rate in May 2023 was 1.80%, up slightly by 0.02% points compared to April 2023 (1.78%). The corresponding twelve-months average for the Rural inflation rate in May 2023 was 20.50%. This was 4.59% higher compared to the 15.91% recorded in May 2022.

Food Index

The Food inflation rate in May 2023 was 24.82% on a year-on-year basis; which was 5.33% points higher compared to the rate recorded in May 2022 (19.50%). The rise in the food inflation on year-on-year basis was caused by increases in prices of Oil and fat, Yam and other tubers, Bread and cereals, Fish, Potatoes, Fruits, Meat, Vegetable, Spirit. 

On a month-on-month basis, the Food inflation rate in May 2023 was 2.19%, this was 0.06% higher compared to the rate recorded in April 2023 (2.13%). The average annual rate of Food inflation for the twelve-months ending May 2023 over the previous twelvemonth average was 23.65%, which was 4.97 % points increase from the average annual rate of change recorded in May 2022 (18.68%)

All Items Less Farm Produce

The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 20.06% in May 2023 on a year-on-year basis; up by 5.16% when compared to the 14.90% recorded in May 2022. The highest increases were recorded in prices of Gas, Passenger transport by Air, Liquid fuel, Vehicles spare parts, Fuels and lubricants for personal transport equipment, medical services, Passenger transport by road etc. 

On a month-on-month basis, the Core inflation rate was 1.81% in May 2023. It stood at 1.46% in April 2023, up by 0.35%. The average twelve-months annual inflation rate was 18.33% for the twelve-months ending May 2023; this was 4.50% points higher than the 13.83% recorded in May 2022.

State Profile

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 2023, all items inflation rate on a year-on-year basis was highest in Ondo (25.84%), Kogi (25.70%), Rivers (25.02%), while Taraba (19.55%), Sokoto (19.56%) and Plateau (19.89%) recorded the slowest rise in headline inflation on year-on-year basis. On a month -on-month basis, however, May 2023 recorded the highest increases in Osun (3.05%), Ebonyi (3.02%), Kogi (2.81%), while Ogun (0.64%), Nasarawa (0.89%) and Imo (0.94%) recorded the slowest rise on month-on-month inflation.

Food Inflation 

In May 2023, Food inflation on a year-on-year basis was highest in Ondo (30.26%), Kogi (29.83%) and Kwara (29.52%), while Sokoto (18.89%), Taraba (21.30%) and Kano (21.33%) recorded the slowest rise in Food inflation on year-on-year basis. On a month-on-month basis, however, May 2023 Food inflation was highest in River (3.74%), Osun (3.44%) and Kogi (3.38%), while Sokoto (0.45%), Kano (0.61%) and Nasarawa (0.85%) recorded the slowest rise in inflation on month-on-month basis