Implications of the 2022 Q2 Consumer Price Index (CPI) on Nigerian Consumers – Way Out

Abstract

Abstract: Consumer Price Index (CPI) is a major indicator used to track inflation rate and cost of living in a country’s economy. Nigeria consumers have over the years been subjected to economic hardship amidst abundant natural resources. Today, cost of living is very high and commodity prices have become unaffordable to many Nigerian consumers. The financial hardship as a result of harsh economic policies, mismanagement of the citizen’s collective commonwealth, corruption, and embezzlement of public fund have created extreme inflation with many consumers unable to afford regular meals in a day. This paper examines the implications of 2022 Q2 Consumer Price Index on Nigeria consumers. It reveals that in the Q2 of 2022, prices of food increased beyond the purchasing power of the average Nigerian consumers. Motor vehicle fuel and natural gas prices increased year on year beyond the reach of the average Nigerian consumers. The cost of electricity, prices for new and used vehicles, motor vehicle spare parts and equipment and even inter and intra state transportation all increased exponentially. A cursory examination of the Q2 of 2022 CPI shows that the purchasing power of consumers declined and the high poverty and unemployment a\level hurts the poor disproportionately. The study suggested among others that government should pursue realistic economic and customs regulatory reforms, deregulate the sale of petroleum products, deregulate power generation and distribution, reduce the level of corruption and enshrine social safety net initiatives especially for the poor. The study concluded that Nigeria consumers are poorer in Q2 of 2022 compared with the same level in preceding years. Keywords: Consumer: Consumer Price Index (CPI): Q2: Inflation: National Economy: Nigeria