The latest data released by the National Bureau of Statistics reveals that Nigeria’s headline inflation rate has increased for the sixth consecutive time, reaching 22.79% in June 2023.

This marks a new 17-year high, surpassing the previous month’s rate of 22.41%.

The report highlights that the June 2023 headline inflation rate recorded a 0.38 percentage point increase compared to May 2023.

On a year-on-year basis, the inflation rate was 4.19 percentage points higher than the rate observed in June 2022.

Food and non-alcoholic beverages were the primary contributors to the rising inflation figure, accounting for 11.81% of the overall increase.

Economists emphasize the need for a holistic approach to tackle inflation, addressing fundamental issues such as production costs and agricultural challenges.

They express optimism in the new administration’s ability to implement strategic policies and provide relief measures to mitigate the impact on households and businesses.

KPMG Nigeria warns that the removal of fuel subsidies could further increase the country’s inflation rate, potentially reaching 30% in June 2023.

The full effect of policy changes on consumer prices is expected to be observed in subsequent months.