Last Updated on 16 July 2024 by Naijadazz
Nigeria’s month-on-month headline inflation rate has risen for the first time since February 2024, according to the latest Consumer Price Index (CPI) report for June 2024 released by the National Bureau of Statistics (NBS).
The CPI, which measures the average change over time in the prices of goods and services consumed by people for day-to-day living, recorded an increase from 2.14% in May 2024 to 2.31% in June 2024.
What the Data is Saying
From January to June 2024, Nigeria experienced notable fluctuations in its inflation rates. January 2024 saw a monthly CPI of 2.64%, which sharply increased to 3.12% in February 2024, marking the highest inflation rate in this period. After February, the inflation rate began to decline steadily, reaching 3.02% in March, followed by a more significant drop to 2.29% in April, and further down to 2.14% in May.
The rise in the monthly CPI to 2.31% in June 2024 indicates a reversal of the downward trend observed in the previous months. This uptick in inflation suggests that the cost of living is once again increasing for Nigerians, reflecting potential underlying economic pressures.
Key Inflation Indicators
- Headline Inflation: The year-on-year headline inflation rate for June 2024 reached 34.19%, up from 33.95% in May 2024, and significantly higher than the 22.79% recorded in June 2023.
- Food Inflation: The food inflation rate in June 2024 was 40.87% year-on-year, compared to 40.66% in May 2024 and 25.25% in June 2023. On a month-on-month basis, food inflation rose to 2.55% in June from 2.28% in May.
- Core Inflation: Core inflation stood at 27.40% year-on-year in June 2024, up from 20.06% in June 2023.
- Urban and Rural Inflation: Urban inflation rate was 36.55% year-on-year in June 2024, while rural inflation rate was 32.09%.
- State-level Inflation: The highest headline inflation rates were recorded in Bauchi (43.95%), Kogi (39.91%), and Oyo (39.15%), while Borno (25.90%), Benue (27.52%), and Katsina (29.21%) experienced the slowest rise.
Government Response
In response to rising inflation, the Federal Government announced on July 8, 2024, the suspension of duties, tariffs, and taxes on some essential food items imported through land and sea borders. This 150-day Duty-Free Import Window covers items such as maize, wheat, husked brown rice, and cowpeas, as part of the Presidential Accelerated Stabilisation and Advancement Plan aimed at achieving food security and economic stability.
The Monetary Policy Committee (MPC) is expected to meet on July 22nd and 23rd, 2024. With year-on-year headline inflation now at 34.19%, another hike in the monetary policy rate (MPR) is anticipated this month.
This comprehensive data paints a clearer picture of Nigeria’s current inflationary pressures and the government’s efforts to address them.
