Nigeria’s Inflation Hits New High in June 2024 – NBS Report

Nigeria’s inflation rate continued its upward trend in June 2024, rising to 34.19 percent from 33.95 percent in May, according to the latest report from the National Bureau of Statistics (NBS). This marks a 0.24 percentage point increase over the previous month.

Compared to June 2023, when the headline inflation rate was 22.79 percent, the June 2024 rate is a staggering 11.40 percentage points higher. On a month-on-month basis, the inflation rate also saw an increase, rising to 2.31 percent in June 2024 from 2.14 percent in May 2024.

The report indicates that the average price level increased at a faster rate in June 2024 than in May 2024. 

A significant contributor to this rise was the food inflation rate, which reached 40.87 percent year-on-year in June 2024, up from 40.66 percent in May 2024. This is 15.62 percentage points higher than the 25.25 percent recorded in June 2023. 

On a month-on-month basis, the food inflation rate climbed to 2.55 percent in June 2024 from 2.28 percent in May 2024. The increase in food prices was driven by higher costs of items such as groundnut oil and palm oil.

Core inflation, which excludes food and energy prices, also saw a notable rise. It stood at 27.40 percent year-on-year in June 2024, up by 7.34 percentage points from 20.06 percent in June 2023. On a month-on-month basis, core inflation was 2.06 percent in June 2024, slightly up from 2.01 percent  in May 2024. 

The average twelve-month annual inflation rate for the period ending June 2024 was 24.06 percent, an increase of 5.59 percentage points from the 18.47 percent recorded in June 2023.

Urban inflation rates surged as well, reaching 36.55 percent year-on-year in June 2024, 12.23 percentage points higher than the 24.33 percent recorded in June 2023. 

On a month-on-month basis, urban inflation was 2.46 percent in June 2024, up from 2.35 percent in May 2024. Rural inflation followed suit, with a year-on-year rate of 32.09 percent in June 2024, compared to 21.37 percent in June 2023. 

Month-on-month, rural inflation was 2.17 percent in June 2024, an increase from 1.94 percent in May 2024.

Regionally, Bauchi recorded the highest headline inflation at 43.95 percent, followed by Kogi at 39.91 percent and Oyo at 39.15 percent. In contrast, Borno (25.90 percent), Benue (27.52 percent), and Katsina (29.21 percent) experienced the slowest year-on-year inflation increases. 

On a month-on-month basis, Yobe (3.79 percent), Abuja (3.45 percent), and Ondo (3.38 percent) saw the highest increases, while Nasarawa (0.71 percent), Osun (1.19 percent), and Kano (1.27 percent) had the slowest month-on-month inflation rises.

This data underscores the ongoing challenges facing Nigeria’s economy, as rising prices continue to impact both urban and rural populations. 

The government and policymakers are under increasing pressure to address the factors driving inflation and to implement measures to stabilise the nation’s economy.