Onome Amuge
Nigeria’s headline inflation rate continued its upward trend for the 18th consecutive month in June 2024, climbing to 34.19 percent from 33.95 percent recorded in May, as the cost of living in Africa’s most populous country continues to soar amid widespread economic hardship. The National Bureau of Statistics (NBS) disclosed the latest inflation figures in its Consumer Price Index and Inflation report just released.
According to the report, the headline inflation rate for June 2024 rose by 0.24 percentage points compared to the figure recorded in May 2024, reaching a new high of 34.19 percent.
The NBS report also revealed a higher month-on-month inflation rate for June 2024, with the rate reaching 2.31 percent, a 0.17 percent increase compared to the 2.14 percent recorded in the previous month.
In a similar trajectory, the average Consumer Price Index (CPI) over the twelve months ending in June 2024 increased by 8.45 percent to 30.00 percent compared to 21.54 percent recorded in June 2023.
The latest NBS report revealed a worrisome rise in the year-on-year food inflation rate in Nigeria, with the rate increasing to 40.87 percent in June 2024. This represents an increase of 15.62 percentage points from the already high rate of 25.25 percent recorded in June 2023, indicating further deterioration in the affordability of basic foodstuffs for Nigerian consumers.
The NBS attributed the rise in food inflation on a year-on-year basis to increases in prices of millet whole grain, garri, guinea corn, etc (bread and cereals class), yam, water yam, coco yam (potatoes, yam & other tubers class), groundnut oil, palm oil, etc (oil & fats class) and catfish dried, dried fish-sardine, mudfish (fish class), etc.
The food inflation rate on a month-on-month basis also rose significantly in June 2024, reaching 2.55 percent, an increase of 0.26 percentage points from the rate of 2.28 percent recorded in May 2024.
The NBS identified several food items that contributed to the rise in food inflation, including 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.
Building on the increasing trend of food inflation rates in Nigeria, the average annual rate of food inflation for the twelve months ending in June 2024 was 35.35 percent, a substantial rise of 11.31 percentage points compared to the 24.03 percent recorded in the corresponding period in June 2023.
The NBS data also showed a worrisome rise in the cost of living in Nigeria’s urban centres. This is as the urban CPI hit 36.55 percent in June 2024, a 12.23 percentage point increase from the 24.33 percent recorded in June 2023.
