…Driven by Soaring Food Prices
The National Bureau of State Statistics (NBS) has announced that Nigeria’s inflation rate has reached a record high of 34.19% for June 2024, a significant increase of 0.24% points compared to the previous month. This surge in inflation is largely attributed to the rising cost of food and other essential goods.
According to the NBS, the Consumer Price Index (CPI), which measures the average change in prices of goods and services consumed by people for day-to-day living, showed a 0.24% increase in the headline inflation rate from 33.95% in May 2024 to 34.19% in June 2024. On a year-on-year basis, the headline inflation rate jumped by 11.40% points compared to the rate recorded in June 2023, which was 22.79%.
The food index, a key component of the CPI, rose by 32.34% in June 2024, driven by higher prices of staple foods such as rice, bread, and potatoes. The core inflation rate, which excludes the prices of volatile agricultural products, also rose by 29.58% in June 2024, up from 28.54% in May 2024.
On a month-on-month basis, the headline inflation rate in June 2024 was 2.31%, 0.17% higher than the rate recorded in May 2024 (2.14%). This indicates a higher rate of increase in the average price level in June 2024 compared to the previous month.
The rising inflation rate is a concern for economic policymakers, as it erodes the purchasing power of consumers and reduces the standard of living. The Nigerian government has been implementing measures to address the issue, including monetary policy tightening and fiscal discipline. However, more needs to be done to address the underlying structural issues driving inflation.
