Business

June 15, 2024

Nigeria’s inflation rate rises to 33.95% in May

Exchange rate: Why prices of goods will remain high, despite Naira appreciation

File image for illustration.

*As Kogi State records highest rise in food inflation

By Elizabeth Adegbesan

Nigeria’s headline inflation rate rose by 0.26 percentage points to 33.95 percent in May from 33.69 per cent in April.

The National Bureau of Statistics, NBS, disclosed this today in its Consumer Price Index, CPI, report for May 2024.

NBS also said that the food inflation also increased to 40.66 percent in May from 40.53 percent in April.

This was due to increases in prices of 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).

According to the bureau, Kogi State had the highest rise in food inflation year-on-year,YoY, with 46.32 percent while Gombe State had the highest MoM rise with 4.88 percent .

NBS said: “In May 2024, the headline inflation rate increased to 33.95 percent relative to the April 2024 headline inflation rate which was 33.69 percent .

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

“On a year-on-year (YoY) basis, the headline inflation rate was 11.54 percentage points higher compared to the rate recorded in May 2023, which was 22.41 percent.

“On the contrary, on a month-on-month basis, the headline inflation rate in May 2024 was 2.14 percent which was 0.15 percentage points lower than the rate recorded in April 2024 (2.29 percent). “

On food inflation, NBS said: “The Food inflation rate in May 2024 was 40.66 percent on a year-on-year basis, which was 15.84 percentage points higher compared to the rate recorded in May 2023 (24.82 percent).

“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).
“Like the month-on-month headline inflation, the month-on-month Food inflation rate in May 2024 was 2.28 percent, also shows a decrease of 0.22 percentage points compared to the rate recorded in April 2024 (2.5 percent).

“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 Potato, Cassava Tuber (under Potatoes, Yam & Other Tubers Class), Wine, Bournvita, Milo, Nescafe (under Coffee, Tea and Coco Class).

“In May 2024, Food inflation on a Year-on-Year basis was highest in Kogi (46.32 percent), Ekiti (44.94 percent), Kwara (44.66 percent), while Adamawa (31.72 percent), Bauchi (34.35 percent) and Borno (34.74 percent), 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 percent), Kano (4.68 percent), and Bayelsa (3.62 percent), while Ondo (0.02 percent), Yobe (0.95 percent) and Adamawa (1.02 percent) recorded the slowest rise in Food inflation on Month-on-Month basis.”