Nigeria’s inflation rate has increased by 20% despite raising its Monetary Policy Rate (interest rate). This increase is above the World Bank’s projection that the country’s inflation rate would hit 15.5%.
The projection was contained in its recent ‘Nigeria Development Update (June 2022): The Continuing Urgency of Business Unusual’.
According to the latest inflation figure from the National Bureau of Statistics (NBS), which was released on Friday, “In June 2022, the inflation rate increased to 18.60% on a year-on-year basis. This is 0.84% points higher compared to the rate recorded in June 2021, which is 17.75%.
“This means that the headline inflation rate increased in the month of June 2022 when compared to the same month in the previous year (i.e., June 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 1.82% in June 2022, this is 0.03% higher than the rate recorded in May 2022 (1.78 %).
“Urban inflation rose to 19.09% and rural inflation hit 18.13% in June 2022. This is despite the recent interest rate increase by the Central Bank of Nigeria.”
In May, the Central Bank of Nigeria (CBN) raised the nation’s interest rate from 11.5% to 13% in a bid to address inflation in the nation.
The CBN Governor, Godwin Emefiele said, “Six members voted to raise the Monetary Policy Committee (MPR) by 150 basis points, four members’ by 100 basis points and one member, by 50 basis points.
“Members expressed deep concern about the continued uptrend of inflationary pressure in spite of the gradual improvement in output growth.
“Committee notes that the current rise in inflation is inimical to growth and the full recovery of the Nigerian economy.”