RATE OF INFLATION IN NIGERIA RISES AGAIN
In comparison to the headline inflation rate for April 2024, this indicates a 0.26% point increase, according per the NBS Consumer Price Index report that was made public on Saturday.
Based on annual comparisons, the headline inflation rate was 11.54% points higher in May 2023 than it was in May 2023 (22.41%), according to the data.
This demonstrates that, in May 2024, the headline inflation rate increased (year over year) in comparison to May 2023. In contrast, the headline inflation rate for May 2024 was 2.14% on a month-over-month basis, which was 0.15% less than the rate for April 2024 (2.29%).
Additionally, the NBS study showed that, on an annual basis, the food inflation rate in May 2024 was 40.66%, 15.84% higher than the rate in May 2023 (24.82%).
It further stated that price increases for the following items were the reason behind the annual rise in food inflation: Beef head, chicken-live, pork head, bush meat, etc. (under Meat class), Irish potatoes, mudfish, crayfish, etc. (under Potatoes, Yam and other Tubers class), soybean oil, vegetable oil, etc. (under Oil and fat), stockfish, crayfish, etc. (under Fish class), and so on.
“The month-over-month rate of
food inflation in May 2024 was
2.28%, similar to the headline inflation rate.
“A decrease in the rate of increase in the average prices of palm oil, groundnut oil (under the Oil and Fats Class), wine, bournvita, milo, and Nescafe (under the Coffee, Tea, and Coco Class), yam, Irish potatoes, and cassava tubers (under the Potatoes, Yam & Other Tubers Class),” is what led to the monthly decline in food inflation.
“For the twelve months ending in May 2024, the average annual rate of food inflation over the previous twelve-month average was 34.06%, representing a 10.41% increase from the average annual rate of change recorded in May 2023 (23.65%).”
During its May Monetary Policy Committee meeting, the Central Bank of Nigeria (CBN) increased interest rates by 150 basis points in an attempt
to slow down inflation.
