Inflation continues to be a cause for concern as the headline inflation rate in April 2023 rose to 22.22% compared to the previous month’s rate of 22.04%. This marks an increase of 0.18% points in the inflation rate when comparing April and March of the same year. On a year-on-year basis, April 2023 also saw a significant increase in the headline inflation rate, with a difference of 5.40% points compared to April 2022.
The data released by the relevant authorities indicates that the contributions of different items on the divisional level to the increase in the headline index are as follows: Food & Non-Alcoholic Beverages had the highest contribution with 11.51%, followed by Housing Water, Electricity, Gas & Other Fuel at 3.72%, Clothing & Footwear at 1.70%, and Transport at 1.45%. Other contributors include Furnishings & Household Equipment & Maintenance, Education, Health, Miscellaneous Goods & Services, Restaurant & Hotels, Alcoholic Beverages, Tobacco & Kola, Recreation & Culture, and Communication.
When analyzing the month-on-month basis, the All-Items Index in April 2023 showed a 1.91% increase, which was 0.05% points higher than the rate recorded in March 2023. This means that, on average, the general price level in April was slightly higher compared to the previous month.
Looking at the percentage change in the average Consumer Price Index (CPI) for the twelve months ending in April 2023 compared to the previous twelve months, there was a significant increase of 4.37%. The average CPI for the twelve months ending in April 2023 stood at 20.82%, compared to 16.45% recorded in April 2022.
The urban inflation rate in April 2023 was 23.39% on a year-on-year basis, reflecting an increase of 6.05% points compared to April 2022. On a month-on-month basis, the urban inflation rate was 2.05% in April 2023, which was 0.05% points higher than March 2023. The corresponding twelve months average for the urban inflation rate was 21.50% in April 2023, showing a 4.49% increase compared to April 2022.
In rural areas, the inflation rate in April 2023 stood at 21.14% on a year-on-year basis, marking an increase of 4.82% points compared to April 2022. On a month-on-month basis, the rural inflation rate in April 2023 was 1.78%, slightly higher by 0.06% points compared to March 2023. The corresponding twelve months average for rural inflation in April 2023 was 20.18%, indicating a 4.27% increase compared to the same period in the previous year.
The rising inflation rates across both urban and rural areas highlight the ongoing challenge of price stability. Policymakers and relevant authorities will need to continue monitoring and implementing measures to mitigate inflationary pressures and ensure economic stability for the well-being of the population.