High Food Prices Push Nigeria’s Inflation Rate To 34.19%

Nigeria’s inflation rate reached 34.19 per cent in June 2024, the highest level in over a year, due to rising food prices.

This represents a 0.24 percentage point increase over the 33.95 per cent recorded in May 2024.

The rate at which prices for goods and services rise in the country has continued to soar, with the latest data from the National Bureau of Statistics (NBS) showing that inflation rose to 34.91 per cent in June, with food inflation rising to 40.89 per cent.

In June, headline inflation increased by 17 basis points to 2.31 per cent from 2.14 per cent in May, exceeding analysts’ estimate of 34%.

The headline inflation rate was 11.40 percentage points higher year on year than in June 2023, when it stood at 22.79 per cent.

In June 2024, the month-on-month inflation rate increased to 2.31 per cent, up from 2.14 per cent in May.

The NBS attributed the spike in inflation to rising food, transportation, and housing costs. Food inflation alone reached 40.87 per cent in June, the highest ever recorded.

The headline inflation rate in June 2024 increased by 0.24 percentage points compared to the headline inflation rate in May 2024.

On a year-on-year basis, the headline inflation rate was 11.40 percentage points higher than in June 2023, when it was 22.79 per cent.

This demonstrates that the headline inflation rate (year-on-year) increased in June 2024 compared to the same month in the previous 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 in May 2024.

According to the most recent data, the average price level is increasing at a faster rate in June 2024 than it was in May 2024.

Meanwhile, food inflation increased by 21 basis points to 40.87 per cent year on year (40.66 per cent in May).

Food inflation increased year on year due to price increases in the following items: Millet Whole grain, Garri, Guinea corn, etc. (Bread and Cereals Class), Yam, Water Yam, Coco Yam (Potatoes, Yam and Other Tubers Class), Groundnut Oil, Palm Oil, etc. (Oil & Fats Class), and Catfish Dried, Dried Fish-Sardine and Mudfish (Fish Class).

Food inflation increased by 2.55 per cent month on month, up from 2.28 per cent m/m the previous month.

Similarly, Core inflation rose by 36 basis points to 27.40 per cent year on year (27.04 per cent in May). Rents (Actual and Imputed Rentals for Housing Class), motorbike journeys, intercity bus journeys (under Passenger Transport by Road Class), accommodation services, medical doctor consultation fees, laboratory services, X-ray photography, and pharmaceutical products saw the greatest increases.

The Core index increased by 5 basis points to 2.06% m/m in June, up from 2.01% m/m in May.

In response, the Nigerian government recently announced a 150-day duty-free import period for essential food items such as maize, wheat, and rice to help stabilise prices. The government intends to work with states to expand land cultivation across the country.

Analysts, however, warn that the economy and consumers may suffer as a result of the persistently high inflation rate. In June, the core inflation rate, which excludes food and energy, reached 26.41 per cent.

As policymakers grapple with inflationary pressures, the public eagerly awaits additional measures to address the underlying causes of rising living costs.

Nigerians can earn US dollars by acquiring premium domains for as little as $1200 and profiting $17,000 (₦27 million).