Nigeria‘s Inflation Reachs 34.19% Due To High Food Prices
Rising food costs caused Nigeria’s inflation rate to rise to 34.19 percent in June 2024—the highest level in more than a year. Compared to the 33.95 percent recorded in May 2024, this is a 0.24 percentage point
increase.
The National Bureau of Statistics (NBS) recently released data showing that the country’s inflation rate for June increased to 34.91 percent, with food inflation rising to 40.89 percent. This indicates that the rate at
which prices of products and services are rising has continued to surge.
This was higher than the 34% inflation rate that analysts had predicted for June, as estimates of headline inflation increased by 17 basis points to 2.31 percent month over month in May, but only by 2.14 percent
month over month in May.
The headline inflation rate was 11.40 percentage points higher in June 2023 than it was in June 2023, when it was 22.79 percent. In June 2024, the monthly inflation rate increased from 2.14 percent in May to
2.31 percent.
The NBS ascribed the increase in inflation to growing expenses for housing, transportation, and food. In June, food inflation alone hit an all-time high of 40.87 percent.
When comparing the headline inflation rate for June 2024 to the rate for May 2024, there was a 0.24 percentage point gain. Compared to the rate of 22.79 percent in June 2023, the headline inflation rate
increased by 11.40 percentage points year over year.
This shows that the headline inflation rate (year-on-year basis) increased in the month of June 2024 as compared to the same month in the preceding year (i.e. June 2023). Furthermore, on a month-on-month
basis, the headline inflation rate in June 2024 was 2.31 per cent, which was 0.17 per cent higher than the rate reported in May 2024 (2.14 per cent).
According to the most recent statistics available, the average price level increased at a faster rate in June 2024 than it did in May 2024.
In the meantime, food inflation rose by 21 basis points to 40.87 percent year over year (May: 40.66 percent y/y).
The following products’ price increases contributed to the annual rise in food inflation: groundnut oil, palm oil, etc. (Oil & Fats Class); millet whole grain, garri, Guinea corn, etc. (Bread and Cereals Class); yam,
water yam, coco yam (Potatoes, Yam & Other Tubers Class); and dried catfish, dried fish.
Compared to the 2.28 percent m/m recorded in the previous month, food inflation grew by 2.55% month over month.
Likewise, Core inflation rose by 36 basis points to 27.40 percent y/y (May: 27.04 percent y/y). The following items had the highest price increases: rent (actual and imputed rentals for housing class),
motorbike and bus trips (under passenger transport by road class), lodging services, doctor consultation fees, laboratory services (under medical services class), X-ray photography, etc., and pharmaceutical
products. The Core index increased by 5bps in June compared to May, rising to 2.06% m/m (May: 2.01% m/m).
To help stabilise prices, the Nigerian government responded by announcing a 150-day duty-free import window for staple foods like rice, wheat, and maize.
Additionally, the government intends to work with the states to increase land cultivation across the country.
Nonetheless, experts caution that the economy and consumers may suffer greatly as a result of the inflation rate’s ongoing high level. In June, the core inflation rate—which does not include food and energy—rose to 26.41%.
The public is anxiously awaiting additional actions to address the fundamental causes raising the cost of living as officials struggle with the inflationary pressures.
