Again, cost of food items pushes Nigeria’s inflation rate to 33.95%

The National Bureau of Statistics (NBS) has reported that in May 2024, the headline inflation rate increased to 33.95 per cent relative to the 33.69 per cent recorded in April 2024.

The NBS attributed the rise in inflation majorly to high costs of food & non-alcoholic beverages, which contributed 17.59 per cent, and housing, water, electricity, gas & other fuel which contributed 5.68 per cent.

Looking at the movement, the May 2024 headline inflation rate showed an increase of 0.26 per cent points compared to the April 2024 headline inflation rate.

The Food inflation rate in May 2024 was 40.66 per cent on a year-on-year basis, which was 15.84 per cent points higher compared to the 24.82 per cent rate recorded in May 2023.

The NBS said, “The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following items: Semovita, Oatflake, Yam flour prepackage, Garri, Bean, etc (which are under Bread and Cereals Class), Irish Potatoes, Yam, Water Yam, etc (under Potatoes, Yam and other Tubers Class), Palm Oil, Vegetable Oil, etc (under Oil and fat), Stockfish, Mudfish, Crayfish, etc (under Fish class), Beef Head, Chicken-live, Pork Head, Bush Meat, etc (under Meat class).”

It added that “Like the month-on-month headline inflation, the month-on-month Food inflation rate in May 2024 was 2.28 per cent, also shows a decrease of 0.22 per cent compared to the rate recorded in April 2024 (2.50%). The fall in the Food inflation on a Month-on-Month basis was caused by a fall in the rate of increase in the average prices of Palm Oil, Groundnut Oil (under Oil and Fats Class), Yam, Irish Potatoe, Cassava Tuber (under Potatoes, Yam & Other Tubers Class), Wine, Bournvita, Milo, Nescafe (under Coffee, Tea and Coco Class)”.

The average annual rate of Food inflation for the twelve months ending May 2024 over the previous twelve-month average was 34.06 per cent, which was a 10.41 per cent point increase from the average annual rate of 23.65 per cent change recorded in May 2023.

Data released by the NBS yesterday showed that on a year-on-year basis, the headline inflation rate was 11.54 per cent points higher compared to the 22.41 per cent rate recorded in May 2023.

This shows that the headline inflation rate (year-on-year basis) increased in the month of May 2024 when compared to the same month in the preceding year of May 2023.

On the contrary, on a month-on-month basis, the headline inflation rate in May 2024 was 2.14 per cent, which was 0.15 per cent lower than the 2.29 per cent rate recorded in April 2024.

This means that in the month of May 2024, the rate of increase in the average price level is less than the rate of increase in the average price level in April 2024.

According to the NBS, “The percentage change in the average CPI for the twelve months ending May 2024 over the average of the CPI for the previous twelve-month period was 29.06 per cent, showing a 7.86 per cent increase compared to 21.20 per cent recorded in May 2023”.

On a year-on-year basis, in the month of May 2024, the urban inflation rate was 36.34 per cent; this was 12.61 per cent points higher compared to the 23.74 per cent recorded in May 2023.

On a month-on-month basis, the urban inflation rate was 2.35 per cent in May 2024, indicating 0.32 per cent points lower compared to 2.67 per cent in April 2024.

The corresponding twelve-month average for the urban inflation rate was 31.07 per cent in May 2024, showing 9.12 per cent points higher compared to the 21.95 per cent reported in May 2023.

The NBS said the rural inflation rate in May 2024 was 31.82 per cent on a year-on-year basis; this was 10.63 per cent higher compared to the 21.19 per cent recorded in May 2023.

On a month-on-month basis, the rural inflation rate in May 2024 was 1.94 per cent, up by 0.02 per cent points compared to 1.92 per cent in April 2024.

The corresponding twelve-month average for the rural inflation rate in May 2024 was 27.27 per cent, showing 6.76 per cent higher compared to the 20.50 per cent recorded in May 2023.

The “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 27.04% in May 2024 on a year-on-year basis; up by 7.21% when compared to the 19.83% recorded in May 2023. The highest increases were recorded in prices of the following items: Rents (Actual and Imputed Rentals for Housing Class), Bus Journey intercity, Taxi Journey per drop, etc (under Passenger Transport by Road Class), Accommodation Service, and X-ray photography, Consultation Fee of a medical doctor, Laboratory service, etc (under Medical Services Class).

The month-on-month Core inflation rate like the headline and food also fell to 2.01 per cent in May 2024 from 2.20 per cent recorded in April 2024, showing a decline of 0.18 per cent.

The average twelve-month annual inflation rate was 23.45 per cent for the twelve months ending May 2024; this was 5.34 per cent points higher than the 18.11 per cent recorded in May 2023.

In May 2024, the All-Items inflation rate on a Year-on-Year basis was highest in Bauchi (42.30%), Kogi (39.38%), and Oyo (37.73%), while Borno (25.97%), Benue (27.74%) and Delta (28.67%) recorded the slowest rise in Headline inflation on Year-on-Year basis.

On a Month-on-Month basis, however, May 2024 recorded the highest increases in Kano (4.24%), Gombe (4.06%), Bauchi (3.75%), while Ondo (0.57%), Kwara (1.19%) and Yobe (1.24%) recorded the slowest rise on Month-on-Month inflation.

In May 2024, Food inflation on a Year-on-Year basis was highest in Kogi (46.32%), Ekiti (44.94%), Kwara (44.66%) while Adamawa (31.72%), Bauchi (34.35%), and Borno (34.74%), recorded the slowest rise in Food inflation on Year-on-Year basis.

On a Month-on-Month basis, however, May 2024 Food inflation was highest in Gombe (4.88%), Kano (4.68%), and Bayelsa (3.62%), while Ondo (0.02%), Yobe (0.95%) and Adamawa (1.02%) recorded the slowest rise in Food inflation on Month-on-Month basi