In July 2023, the overall prices for goods and services increased. The cost of living, often referred to as headline inflation went up by 1.29% compared to the previous month, June 2023, where when the increase was 22.79%. Â
Every year, the cost of living in July 2023 was 24.08%, which is 4.44% higher than the rate recorded in July 2022 (19.64%). This indicates that the general cost of living increased in July 2023 when compared to the same month in the previous year, July 2022.Â
Year-on-year inflation across statesÂ
Kogi, Lagos, and Ondo states recorded the highest year-on-year inflation rate from July 2022 to July 2023 with 28.45%, 27.30%, and 26.83% respectively.
The other states completing the top ten are Bayelsa (26.65%), Ogun (26.60%), Rivers (26.30%), Abia (26.09%), Akwa-Ibom (26.06%), Oyo, (25.81%) and Anambra (25.21%)Â
On the other hand, Borno (20.71%), Jigawa (20.85%), and Sokoto (20.92%) recorded the lowest year-on-year inflation rate in the country. Â
Year-on-year food inflationÂ
Food prices in July 2023 increased the most in Kogi state (34.53%), Lagos state (32.52%), and Bayelsa state (31.31%), when compared to July 2022.
The other seven are; Kwara (30.87%), Imo (30.28%), Ekiti (30.19%), Ondo (30.14%), Ogun (30.12%), Edo (29.89%) and Akwa-Ibom (29.61%).Â
Food prices saw the slowest increase in Jigawa (20.90%), Sokoto (21.63%), and Kebbi (22.45%). Â
Monthly food inflationÂ
On a month-on-month basis, the inflation rate was highest in the following states- Kogi (4.99%), Abia (4.12%), and Akwa Ibom (4.07%).
Other states completing the top ten are; Ogun (4.03%), Oyo (3.98%), Bayelsa (3.97%), Lagos (3.40%), Edo (3.38%), Rivers (3.25%), and Kaduna (3.08%). Â
The food price increase was slowest in the following states Taraba (-0.21%), Jigawa (0.28%), and Yobe (0.90%) on a month-on-month basis. Â
Drivers of InflationÂ
Overall, states from the southern parts of Nigeria saw higher inflation both in food inflation and all item inflation index while those in the north saw moderate level inflation. Â
Food is the major driver of inflation in Nigeria, the data from the NBS food price watch for June 2023 reveals that the prices of staple foods increased on average by 25% year-on-year from June 2022.
The National Bureau of Statistics noted that oil, bread, fats, fish, cereals, yam, etc were mostly responsible for the consistent increase in inflation for most of the past twelve months.Â
Beyond food, electricity, rent, transport, education, health, etc were adjudged as the major drivers of inflation in the country. Â
On average food inflation in Nigeria stands at 26.98% which is 4.97% higher than the figure recorded for June 2022. Â
