Nigeria’s inflation rate increased to 22.79% year-on-year in June 2023, compared to 22.41% in May. Analysts were surprised by the moderate increase, considering the reforms in the petroleum and foreign exchange sectors, which typically lead to higher prices. The National Bureau of Statistics (NBS) reported that food inflation also rose to 25.25% in June from 24.82% in May. The increase in food inflation was attributed to higher prices of oil and fat, bread and cereals, fish, potatoes, yam and other tubers, fruits, meat, vegetables, milk, cheese, and eggs. Analysts noted that despite the lower-than-expected inflation rate, there may be further inflationary pressures in the coming months due to the lagged impact of subsidy removal and the recent increase in parallel market rates. They also highlighted potential risks to imported food prices, such as the termination of the Black Sea grain deal and the food demand-supply gap during the lean season and flooding in certain regions.