Nigeria’s annual inflation rate has surged for the fifth consecutive month, reaching 34.19% as residents of Africa’s most populous country continue to grapple with a severe cost of living crisis. The latest figures from the National Bureau of Statistics (NBS), released on Monday, reveal a worrying trend of rising prices affecting everyday life.

The June inflation rate of 34.19% marks a 0.24% increase from the 33.95% recorded in May. This is a significant rise from the lowest figure recorded in 2024, which was 29.90% in January. On a year-on-year basis, the headline inflation rate was 11.40 percentage points higher compared to June 2023, which saw an inflation rate of 22.79%.

“This shows that the headline inflation rate (year-on-year basis) increased in the month of June 2024 when compared to the same month in the preceding year (i.e. June 2023),” the NBS stated.

The bureau also noted that on a month-on-month basis, the headline inflation rate in June 2024 was 2.31%, a 0.17% increase from May 2024’s rate of 2.14%. This indicates that the rate of increase in average price levels in June was higher than in May.

The report highlights that the food inflation rate in June 2024 rose to 40.87% year-on-year, which is 15.62 percentage points higher than the 25.25% recorded in June 2023. This sharp increase in food prices has been a significant burden on Nigerian households.

The inflation spike comes amidst ongoing economic challenges following the government’s removal of petrol subsidies last year and the decision to float the naira, allowing its value to be determined by market forces. These measures have led to significant increases in fuel and food prices, further straining household budgets.

In response to these economic pressures, President Bola Tinubu last Monday unveiled a series of proactive measures aimed at tackling the soaring food prices. The government has been implementing various reforms to stabilize the foreign exchange market and curb speculative activities.

The NBS inflation report detailed the contributions of various items to the headline index increase. The significant contributors include food & non-alcoholic beverages (17.71%), housing, water, electricity, gas & other fuel (5.72%), clothing & footwear (2.62%), and transport (2.23%). Other notable contributors are furnishings & household equipment & maintenance (1.72%), education (1.35%), health (1.03%), miscellaneous goods & services (0.57%), restaurant & hotels (0.41%), alcoholic beverages, tobacco & kola (0.37%), recreation & culture (0.23%), and communication (0.23%).

The percentage change in the average Consumer Price Index (CPI) for the twelve months ending June 2024 over the previous twelve-month period was 30.00%, showing an 8.45% increase compared to the 21.54% recorded in June 2023.

The NBS also reported that the rise in food inflation on a year-on-year basis was driven by significant price increases in key staples such as millet, garri, guinea corn, yam, and various oils and fats. The month-on-month food inflation rate in June 2024 was 2.55%, a 0.26% increase from May 2024’s rate of 2.28%.

“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%),” the report concluded.

The Nigerian government faces mounting pressure to address these inflationary challenges and ease the economic burden on its citizens.

Source: Premium Times