City in Nigeria

Nigeria Inflation June 2023

Nigeria: Inflation approaches 18-year high in June

Inflation rose to 22.8% in June, above May’s 22.4% and the highest inflation rate since September 2005. The removal of fuel subsidies in late May prompted a spike in energy prices, which translated into stronger price pressures for transportation and food.

The trend pointed up, with annual average inflation coming in at 21.5% in June (May: 21.2%). Meanwhile, core inflation ticked up to 20.3% in June, from May’s 20.1%.

Finally, consumer prices rose 2.13% in June over the previous month, accelerating from the 1.94% rise seen in May. June’s figure was the sharpest monthly increase in prices since May 2016.

Soaring food inflation led President Tinubu to declare a state of emergency in mid-July. A National Commodity Board will monitor food prices and manage strategic grain reserves. Moreover, additional security will be deployed in the central Nigeria, where there is an ongoing conflict between farmers and herdsmen.

Analysts at the EIU added:

“Devaluation of the naira in June will add to price pressures in the coming months. […] Another cause of high food prices is being caused by various import controls, including on staples such as rice. […] We believe that cost-of-living pressures are a distinct threat to wider political stability.”

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