Nigerian Workers' Salary Slashed by 19% as Inflation Rate Rises to 18-Year-High, 3 States Worst Hit
- The National Bureau of Statistics has revealed that Nigeria's inflation rate increased again in July
- This is the seventh time the bureau is reporting an increase in Nigeria's inflation rate
- The latest inflation means the value of Nigeria's minimum wage has dropped from N30k to N24k
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The National Bureau of Statistics(NBS) has revealed that Nigeria’s annual inflation rate rose for the seventh straight month, nearing an 18-year high of 24.08% in July 2023
The bureau stated this in its latest inflation report on Tuesday, August 15, 2023.
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Breakdown of June inflation
The report also stated that inflation rose to 24.08% in July 2023 from 22.79% the previous month. This is as the food inflation rate quickened to 26.98% in July from 25.25% last month.
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Looking at the movement, the July 2023 headline inflation rate increased by 1.29% compared to the June 2023 headline inflation rate.
The report added:
"On a year-on-year basis, the headline inflation rate was 4.44% points higher compared to the rate recorded in July 2022, which was 19.64%.
"This shows that the headline inflation rate (year -on-year basis) increased in July 2023 when compared to the same month in the preceding year (i.e., July 2022)."
Food Inflation
NBS also revealed that food inflation, an essential indicator of how Nigerian households struggle, increased in July 2023 to 26.98% from the previous month's 25.25%.
It also stated that the July 2023 inflation on a year-on-year basis was 4.97% points higher compared to the rate recorded in July 2022 (22.02%).
The bureau identified rising prices of Oil and fat, Bread and cereals, Fish, Potatoes, Yam and other tubers, Fruits, Meat, Vegetable, Milk, Cheese, and Eggs as the cause of the increase in food inflation.
States with highest inflation rate
- Kogi - 28.45%
- Lagos - 27.30%
- Ondo - 26.83%
Food Inflation
- Kogi - 34.53%
- Lagos - 32.52%
- Bayelsa - 31.31%
How new inflation rate affects Nigerians
Based on the latest inflation rate figure, the value of the minimum wage, which is N30,000, has now been reduced by 19.41%.
Economists calculate workers’ real income by dividing their wages by the annual inflation rate. It is calculated as [Wages / (1 + 24.08%) = Real Income].
Using the above formula, when adjusted for inflation, an average Nigerian worker’s annual salary of N30,000 is now N24,177.
Bread supply threatened as rising flour costs fuel conflict between bakers and millers
In related news, Legit.ng reported how the Premium Bread Makers Association of Nigeria, PBAN, disagreed with the claim that the price of flour has not increased in the last year.
This comes after the announcement by the Association of Master Bakers and Caterers of Nigeria, AMBCH, on the planned bread price hike.
Emmanuel Onuorah, President of PBAN, accused the flour millers of implementing another increase in the price of flour after the naira devaluation.
Source: Legit.ng
