Nigeria’s inflation rate increases to 34.19% amid rising food prices

Nigeria’s inflation rate rose to 34.19 percent in June 2024 — up from 33.95 percent in May.

The data is captured in the National Bureau of Statistics (NBS) in its consumer price index (CPI) report for June, released on Monday.

The CPI measures the rate of change in prices of goods and services.

According to the bureau, food inflation also surged to 40.87 percent in the month under review as prices of food and non-alcoholic beverages continued to surge.

NBS said the headline inflation rate in June showed an increase of “0.24% points when compared to the May 2024 headline inflation rate”.

“On a year-on-year basis, the headline inflation rate was 11.40% points higher compared to the rate recorded in June 2023, which was 22.79%,” the NBS said.

“This shows that the headline inflation rate (year-on-year basis) increased in the month of June 2024 when 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%, which was 0.17% higher than the rate recorded in May 2024 (2.14%).

“This means that in the month of June 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in May 2024.”

FOOD INFLATION EDGED UP BY 15.62% IN JUNE

NBS further said the food inflation rate in June 2024 was 40.87 percent on a year-on-year basis — a 15.62 percent uptick compared to the rate recorded in June 2023 (25.25 percent).

This, the bureau said, was caused by increases in prices of items such as millet whole grain, garri, guinea corn, bread and cereals class, yam, groundnut oil, palm oil, and catfish.

“On a month-on-month basis, the Food inflation rate in June 2024 was 2.55% which shows a 0.26% increase compared to the rate recorded in May 2024 (2.28%),” the bureau said.

“The rise in food inflation on a month-on-month basis was caused by the rise in the rate of increase in the average prices of groundnut oil, palm oil, etc (oil & fats class), water yam, coco yam, cassava, etc (potatoes, yam & other tubers class), tobacco, catfish fresh, croaker, mudfish fresh, snail, etc, (Fish Class).”

“The average annual rate of Food inflation for the twelve months ending June 2024 over the previous twelve-month average was 35.35%, which was an 11.31% points increase from the average annual rate of change recorded in June 2023 (24.03%).”

The report also said Edo (47.34 percent), Kogi (46.37 percent), and Cross River (45.28 percent) states spent more on food in June, while Nasarawa (34.31 percent), Bauchi (34.78 percent) and Adamawa (35.96 percent), recorded the slowest rise in food inflation on a year-on-year basis.

On the other hand, Yobe (4.75%), Adamawa (4.74%), and Taraba (4.12%) states had the highest food inflation month-on-month.

NBS said states such asNasarawa (0.14 percent), Kano (0.96 percent) and Lagos (1.25 percent) recorded the slowest rise in food inflation on a month-on-month basis.