The National Bureau of Statistics (NBS) has released new data indicating that the country's inflation rate increased to 34.91 percent in June, with food inflation reaching 40.89 percent. This indicates that the rate of increase in prices for products and services 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 comparison to the Potential monthly rise of 2.14 percent.
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. The headline inflation rate was 11.40 percentage points higher in June 2023 year over year than it was in June 2023 that came to 22.79 percent.
This indicates that, in June 2024, the headline inflation rate increased (year over year) in comparison to June 2023, the same month the previous year. In addition, the headline inflation rate in June 2024 was 2.31 percent on a month-over-month basis, 0.17 percent higher than the rate in May 2024 (2.14 percent).
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 annual increase in food inflation basis was brought on by price increases for the following goods: 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-sardine, and mudfish (Fish Class).
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 biggest price increases noted: Rents (Actual and Imputed Rentals for Housing Class), Journey by motorcycle, Bus Journey intercity (under Passenger Transport by Road Class), Accommodation Service, Consultation Fee pharmaceutical goods, laboratory services, X-ray photography, etc. (all under the Medical Services Class). The Core index increased by 5bps in June compared to May, rising to 2.06% m/m (May: 2.01% m/m).
To help stabilize prices, the Nigerian government recently announced 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 anxiously anticipates additional steps to combat inflationary pressures as policymakers struggle with them deal with the fundamental causes that are raising the expense of living.
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