Inflation Remains Defiant, Hits 34.19 Percent Despite Projections Of Downward Trend

Despite projections and expectations by economic experts and the Central Bank of Nigeria (CBN) of downward trend of the nation’s inflation rate in June 2024, it has remained defiant, hitting 34.19 percent with food cost push inflation standing at 40.87 percent

The inflation rate in June is higher than that of the month of May inflation rate which recorded 33.95 percent.

The National Bureau of Statistics (NBS) disclosed these in its Consumer Price Index (CPI) statistical data for the month of June, 2024 released on Monday.

According to NBS, “In June 2024, the headline inflation rate increased to 34.19% relative to the May 2024 headline inflation rate which was 33.95%.

“Looking at the movement, the June 2024 headline inflation rate showed an increase of 0.24% points when compared to the May 2024 headline inflation rate.

“On a year-on-year basis, the headline inflation rate was 11.40% points higher compared to the rate recorded in June 2023, which was 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).

“Furthermore, on a month-on-month basis, the headline inflation rate in June 2024 was 2.31%, which was 0.17% higher than the rate recorded in May 2024 (2.14%). This means that in the
month of 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 percentage change in the average CPI for the twelve-month 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.”

On the food inflation rate in June 2024, it rose to 40.87% on a year-on-year basis, which was
15.62% points higher compared to the rate recorded in June 2023 (25.25%).

The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following
items: Millet Whole grain, Garri, Guinea corn, etc (Bread and Cereals Class), Yam, Water
Yam, Coco Yam (Potatoes, Yam & Other Tubers Class), Groundnut Oil, Palm Oil, etc (Oil &
Fats Class) and Catfish Dried, Dried Fish-Sadine, Mudfish (Fish Class), etc.

Also, on a month-on-month basis, the Food inflation rate in June 2024 was 2.55% which shows
a 0.26% increase compared to the rate recorded in May 2024 (2.28%).

“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, etc (Oil & Fats Class), Water Yam, Coco Yam,
Cassava, etc (Potatoes, Yam & Other Tubers Class), Tobacco, Catfish Fresh, Croaker, Mudfish Fresh, Snail, etc, (Fish Class).

“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% points increase
from the average annual rate of change recorded in June 2023 (24.03%)”, NBS stated.