In June, the headline inflation rate in Nigeria increased by 24 basis points to 34.19%, as per the figures made public today by the National Bureau of Statistics (NBS). The result exceeded 33.94% analyst estimates.
The food and core inflation baskets rose by 21 basis points and 36 basis points, respectively, to 40.87% and 27.40%, indicating widespread pressure. According to data released today by the statistical office, the headline inflation rate in June 2024 jumped to 34.19% from 33.95% in May 2024.
According to NBS, there was a 0.24% point increase in the headline inflation rate from May 2024 to June 2024. Compared to June’s rate, the headline inflation rate increased by 11.40% points year over year.
This shows that the headline inflation rate increased year-on-year in June 2024 when compared to the same month in the preceding year, 2023. Furthermore, on a month-on-month basis, the headline inflation rate was 2.31%, which was 0.17% higher than the rate recorded in May 2024 at 2.14%.
NBS said this means that in the month of June 2024, the rate of increase in the average price level will be higher than the rate of increase in the average price level in May 2024.
The percentage change in the average CPI for the twelve-month period ending June 2024 over the average of the CPI for the previous twelve-month period was 30.00%, showing an 8.45% increase compared to 21.54% recorded in June 2023.
URBAN INFLATION
urban inflation rate was 36.55%, 12.23% higher compared to the 24.33% recorded in June 2023. On a month-on-month basis, the Urban inflation rate was 2.46%, 0.11% higher compared to May 2024, when it was 2.35%.
NBS stated that the corresponding twelve-month average for the urban inflation rate was 32.08% in June 2024. This was 9.70 % higher compared to the 22.38% reported in June 2023.
RURAL INFLATION
In June 2023, rural inflation was 10.71% higher than the national average of 21.37%. Year-over-year, rural inflation was 32.09%. The rural inflation rate ended the month of May 2024 at 2.17%, a 0.23% point increase over the previous month’s reading of 1.94%.
In June 2024, the equivalent 12-month average of the rural inflation rate was 28.15%. In contrast to the 20.76% reported in June 2023, this was 7.39% higher. In June 2023, the food inflation rate was recorded at 25.25%; year over year, it increased by 15.62% points to 40.87%.
According to NBS, the rise in food inflation year over year was brought on by price hikes for yam, millet whole grain, garri, guinea corn, and other items in the bread and cereal class.
This include surge in prices of Water Yam, Coco Yam, Groundnut Oil, Palm Oil, etc (Oil & Fats Class) and Catfish Dried, Dried Fish-Sadine, Mudfish (Fish Class), etc.
On a month-on-month basis, the food inflation rate printed at 2.55%, which shows a 0.26% increase compared to 2.28% recorded in May 2024. NBS stated that 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, water yam, coco yam, cassava, tobacco, catfish fresh, croaker, mudfish fresh, snail, etc
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% increase from the average annual rate of change recorded in June 2023 (24.03%).
