Nigeria’s inflation hits 34.19 in June – NBS

The National Bureau of Statistics (NBS), says Nigeria’s headline inflation rate increased to 34.19 per cent in June 2024.

The NBS said this in its Consumer Price Index (CPI) and Inflation Report for June, which was released in Abuja on Monday.

According to the report, the figure is 0.24 per cent points higher compared to the 33.95 per cent recorded in May 2024.

It showed that on a year-on-year basis, the headline inflation rate in June 2024 was 11.40 per cent higher than the rate recorded in June 2023 at 22.79 per cent.

In addition, the report showed, 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 recorded in May 2024 at 2.14 per cent.

“This means that in June 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in May 2024.”

The report also showed the increase in the headline index for June 2024 on a year-on-year basis and month-on-month basis was attributed to the increase in some items in the basket of goods and services at the divisional level.

It further showed that the increases were observed in food and non-alcoholic beverages, housing, water, electricity, gas, and other fuel, clothing and footwear, and transport.

Others were furnishings, household equipment and maintenance, education, health, miscellaneous goods and services, restaurants and hotels, alcoholic beverages, tobacco and kola, recreation and culture, and communication.

It said the percentage change in the average CPI for the 12 months ending June 2024 over the average of the CPI for the previous corresponding 12-month period was 30 per cent.

“This indicates an 8.45 per cent increase compared to 21.54 per cent recorded in June 2023.”

The report said the food inflation rate in June 2024 increased to 40.87 per cent on a year-on-year basis, which was 15.62 per cent higher compared to the rate recorded in June 2023 at 25.25 per cent.

“The rise in food inflation on a year-on-year basis is caused by increases in prices of Millet Whole grain, Garri, Guinea corn, Yam, Water Yam, Coco Yam Groundnut Oil, Palm Oil, etc.

“Others are Catfish Dried, Dried Fish-Sadine, Mudfish, etc.”

It said on a month-on-month basis, the food inflation rate in June was 2.55 per cent, which was a 0.26 per cent increase compared to the rate recorded in May 2024 at 2.28 per cent.

“The rise in food inflation on a month-on-month basis was caused by an increase in the average prices of Groundnut Oil, Palm Oil, Water Yam, Coco Yam, Cassava, etc.

“Others are Tobacco, Catfish Fresh, Croaker, Mudfish Fresh, Snail, etc,”

The report showed that “all items less farm produce and energy” or core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 27.40 per cent in June on a year-on-year basis.

“This increased by 7.34 per cent compared to 20.60 per cent recorded in June 2023.”

“The exclusion of the PMS is due to the deregulation of the commodity by removal of subsidy.”

It said the highest increases were recorded in prices of Actual and Imputed Rentals for Housing Class, Journey by motorcycle, Bus Journey intercity, etc.

“Others are Accommodation Service, X-ray photography, Consultation Fee of a medical doctor, Laboratory service, and Pharmaceutical products, among others.”

The NBS said on a month-on-month basis, the core inflation rate was 2.06 per cent in June 2024.

“This indicates a 0.05 per cent increase compared to what was recorded in May 2024 at 2.01 per cent.”

“The average 12-month annual inflation rate was 24.06 per cent for the 12 months ending June 2024, this was 5.59 per cent points higher than the 18.47 per cent recorded in June 2023.”

The report said on a year-on-year basis in June 2024, the urban inflation rate was 36.55 per cent, which was 12.23 per cent higher compared to the 24.33 per cent recorded in June 2023.

“On a month-on-month basis, the urban inflation rate was 2.46 per cent, which increased by 0.11 per cent compared to May 2024 at 2.35 per cent.’’

The report said on a year-on-year basis in June 2024, the rural inflation rate was 32.09 per cent, which was 10.71 per cent higher compared to the 21.37 per cent recorded in June 2023.

“On a month-on-month basis, the rural inflation rate was 2.17 per cent, which increased by 0.23 per cent compared to May 2024 at 1.94 per cent.’’

On states’ profile analysis, the report showed that in June, all items’ inflation rate on a year-on-year basis was highest in Bauchi at 43.95 per cent, followed by Kogi at 39.91 per cent, and Oyo at 39.19 per cent.

It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Borno at 25.90 per cent, followed by Benue at 27.52 per cent, and Katsina at 29.21 per cent.

The report, however, said in June 2024, all items inflation rate on a month-on-month basis was highest in Yobe at 3.79 per cent, followed by Abuja at 3.45 per cent, and Ondo at 3.38 per cent.

“Nasarawa at 0.71 per cent, followed by Osun at 1.19 per cent and Kano at 1.27 per cent recorded the slowest rise in month-on-month inflation.”

The report said on a year-on-year basis, food inflation was highest in Edo at 47.34 per cent, followed by Kogi at 46.37 per cent, and Cross River at 45.28 per cent.

“Nasarawa at 34.31 per cent, followed by Bauchi at 34.78 per cent and Adamawa at 35.96 per cent recorded the slowest rise in food inflation on a year-on-year basis.”

The report, however, said on a month-on-month basis, food inflation was highest in Yobe at 4.75 per cent, followed by Adamawa at 4.74 per cent, and Taraba at 4.12 per cent.

“While Nasarawa at 0.14 per cent, followed by Kano at 0.96 per cent and Lagos at 1.25 per cent, recorded the slowest rise in inflation on a month-on-month basis.”