The National Bureau of Statistics (NBS) has released the latest inflation figures, revealing that the headline inflation rate in Nigeria increased to 34.19% in June 2024.
This marks a 0.24 percentage point rise from the May 2024 rate of 33.95%.
On a year-on-year basis, the headline inflation rate surged by 11.40 percentage points, up from 22.79% in June 2023. This significant increase highlights the persistent inflationary pressures affecting the economy.
Food inflation hits 40.87%
One of the primary drivers of this overall inflation is the rise in food prices. The food inflation rate in June 2024 reached 40.87% on a year-on-year basis, which is 15.62 percentage points higher than the 25.25% recorded in June 2023.
The NBS attributes the spike to higher prices of staple items such as millet whole grain, garri, and guinea corn, among others.
Month-on-month, the food inflation rate stood at 2.55% in June 2024, a 0.26 percentage point increase from May 2024’s 2.28%. This indicates a continuing trend of rising food prices, exacerbating the cost of living for many Nigerians.
Urban and rural inflation rates climb
The urban inflation rate in June 2024 was 36.55% on a year-on-year basis, showing a 12.23 percentage point increase from the 24.33% recorded in June 2023. Month-on-month, the urban inflation rate was 2.46% in June 2024, slightly higher than May 2024’s 2.35%.
The 12-month average for urban inflation in June 2024 was 32.08%, 9.70 percentage points higher than the 22.38% reported in June 2023. This reflects sustained inflationary pressures in urban areas, impacting the purchasing power of city dwellers.
In rural areas, the inflation rate rose to 32.09% year-on-year in June 2024, up by 10.71 percentage points from 21.37% in June 2023. On a month-on-month basis, the rural inflation rate was 2.17%, an increase of 0.23 percentage points from May 2024’s 1.94%.
The 12-month average for rural inflation in June 2024 was 28.15%, compared to 20.76% in June 2023, indicating that inflationary trends are also affecting rural populations significantly.
The headline inflation rate on a month-on-month basis in June 2024 was 2.31%, up by 0.17 percentage points from May 2024’s 2.14%. This month-on-month increase suggests that the overall rate of price increases continues to accelerate, compounding the financial strain on households and businesses across the country.
The latest figures from the NBS underscore the ongoing challenge of inflation in Nigeria.
With the headline inflation rate reaching 34.19 % and food prices continuing to climb, the economic pressures on both urban and rural populations are becoming more pronounced.
Policymakers face increasing urgency to implement measures that can stabilise prices and provide relief to the affected citizens.
