NBS: Why inflation only rose slightly in June despite petrol subsidy removal

The National Bureau of Statistics (NBS) has explained why June’s inflation data did not fully capture the impact of petrol subsidy removal and exchange rate unificiation on consumer prices.

Nigeria’s headline inflation rate rose for the sixth consecutive time to 22.79 percent in June 2023, according to data released on Monday by the NBS.

The inflation rate recorded a slight surge from 22.41 percent in May — less than expected by analysts.

In a series of tweets on Monday evening, the country’s statistics agency said data collection for computing the inflation rate typically stops around the middle of a month.

This, the agency said, implies that June’s inflation rate only reflects two weeks of the impact of the policies on consumer prices.

NBS added that the full effect of the subsidy removal and exchange rate unification as relates to prices can, therefore, not be reflected in June only, but also in coming months.

“The June Consumer Price Index (CPI) numbers may not fully capture the impact of the fuel subsidy removal and the unification of the exchange rate,” the tweet reads.

The June Consumer Price Index (CPI) numbers may not fully capture the impact of the fuel subsidy removal and the unification of the exchange rate.

— NBS Nigeria (@NBS_Nigeria) July 17, 2023

“This is because the data collection for computing the rate for the reference month typically stops around the middle of the month, meaning that the June numbers only reflects approximately two weeks of the policy impact on consumer prices.

“The full effect of the policy as relates to prices can, therefore, not be reflected in June only, but also in subsequent months, based on actual prices collected in market outlets across the country.”