Food prices push inflation to 34.19% -NBS

The headline inflation rate for June 2024 has increased to 34.19 percent from 33.95 percent recorded in May 2024, following the current high cost of food stuff.

This was revealed on Monday by the latest data from the National Bureau of Statistics (NBS).

In its Consumer Price Index of June 2024, the NBS noted that the June inflation rate also showed an increase of 0.24 percentage points when compared to the May 2024 headline inflation rate.

The NBS gave the figures in the consumer price report posted on its website

The report also shows that on a year-on-year basis, the headline inflation rate was 11.40 per cent higher, compared to the rate recorded in June 2023, which was 22.79 percent

The report further stated: “Furthermore, on a month-on-month basis, the headline inflation rate in June 2024 was 2.31 percent which was 0.17 percent 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 report added that in June, food prices continued to trigger inflation upwards, with the rates standing at 40.87 percent on a year-on-year basis, which was 15.62 percent points higher, compared to the rate recorded in June 2023 (25.25 percent.

The NBS stated that increases in the prices of millet whole grain, garri, Guinea corn, etc (bread and cereals class), yam, water yam, cocoa yam (potatoes, yam & other tubers class), among others were contributing factors responsible for the increase.

On a month-on-month basis, the food inflation rate in June 2024 was 2.55 per cent, showing a 0.26 percent increase, compared to 2.28 per cent recorded in May, 2024.

The rise was caused by the rise in the rate of increase in the average prices of groundnut oil, palm oil, etc.

“The average annual rate of food inflation for the 12 months ending June 2024 over the previous twelve-month average was 35.35 percent which was a 11.31 per cent increase from the average annual rate of change recorded in June 2023 (24.03 percent ),” it said.

On a state-by-state basis, food inflation on a Year-on-Year basis was highest in Edo (47.34%), Kogi (46.37%), Cross River (45.28%), while Nasarawa (34.31%), Bauchi (34.78%) and Adamawa (35.96%), recorded the slowest rise in food inflation on Year-on-Year basis.

On a Month-on-Month basis, however, it was highest in Yobe (4.75%), Adamawa (4.74%), and Taraba (4.12%), while Nasarawa (0.14%), Kano (0.96%) and Lagos (1.25%) recorded the slowest rise in food inflation on month-on-month basis.

In June 2024, All Items inflation rate on a Year-on-Year basis was highest in Bauchi (43.95%), Kogi (39.91%), and Oyo (39.15%), while Borno (25.90%), Benue (27.52%) and Katsina (29.21%) recorded the slowest rise in Headline inflation on Year-on-Year basis.

“On a month-on-month basis, however, June 2024 recorded the highest increases in Yobe (3.79%), Abuja (3.45%), Ondo (3.38%), while Nasarawa (0.71%), Osun (1.19%) and Kano (1.27%) recorded the slowest rise on Month-on-Month inflation” it further stated.

On a year-on-year basis, in the month of June 2024, the Urban inflation rate was 36.55%, this was 12.23% points higher compared to the 24.33% recorded in June 2023.

On a month-on-month basis, the urban inflation rate was 2.46% in June 2024. This was 0.11% points higher compared to May 2024 (2.35%). The corresponding twelve-month average for the urban inflation rate was 32.08% in June 2024. This was 9.70 % points higher, compared to the 22.38% reported in June 2023.

While rural inflation rate in June 2024 was 32.09 per cent on a year-on-year basis; this was 10.71 per cent higher compared to the 21.37 per cent recorded in June 2023.

The statistics agency stated that “on a month-on-month basis, the rural inflation rate in June 2024 was 2.17%, up by 0.23% points compared to May 2024 (1.94%). The corresponding twelve-month average for the rural inflation rate in June 2024 was 28.15%. This was 7.39% higher compared to the 20.76% recorded in June 2023.”

Furthermore, core inflation stood at 27.40% in June 2024 on a year-on-year basis; indicating an upward movement of 7.34 per cent when compared to the 20.06 per cent recorded in June 2023.

“On a month-on-month basis, the core inflation rate was 2.06% in June 2024. It stood at 2.01% in May 2024, an increase of 0.05%. The average twelve-month annual inflation rate was 24.06% for the twelve months ending June 2024. This was 5.59% points higher than the 18.47% recorded in June 2023,” it stated.