Inflation hits 33.69% in April as prices of food items jump higher
By Patience Ikpeme
Nigeria’s economy soaked further under inflationary pressure in the month of April settling at 33.69 percent relative to the March figure of 33.20 percent , National Bureau of Statistics (NBS) said in the last inflation report for April,2024.
The increase, represents 0.49% points when compared to the March 2024 headline inflation rate.
On a year-on-year basis, the rate was 11.47% points higher compared to the March figure of 22.22%. On a month-on-month basis, the headline inflation rate in April 2024 was 2.29%, which was 0.73% lower than the rate recorded in March 2024 (3.02%). According to NBS, it means that , in the month of April 2024, the rate of increase in the average price level was less than the rate of increase in the average price level in March 2024.
Rise in inflation in April, NBS disclosed was driven largely by increases in food prices. It put food inflation in the month reference (April 2024) at 40.53% on a year-on-year basis, which was 15.92% points higher compared to the rate recorded in April 2023 (24.61%).
“The rise in food inflation on a year-on-year basis was caused by increases in prices of the following items :millet flour, garri, bread, wheat flour prepacked, semovita (which are under bread and cereals class), yam tuber, water yam, cocoyam (under potatoes, yam and other tubers Class), coconut oil, palm kernel Oil, vegetable oil, etc (under Oil and fat), dried fish ,sadine, catfish dried, mudfish dried (under fish class), beef head, beef feet, liver, frozen
Chicken (under Meat class), Mongo, banana, grapefruit (under Fruit class), lipton tea, bournvita, milo (under coffee, tea and cocoa Class)”.
“On a month-on-month basis, the Food inflation rate in April 2024 was 2.50% which shows a 1.11% decrease compared to the rate recorded in March 2024 (3.62%). The fall in food inflation on a month-on-month basis was caused by a fall in the rate of increase in the average prices of Yam, Water Yam, Irish Potatoes (under Potatoes, Yam & Other Tubers Class), Beer, Local Beer (under Tobacco Class), Milo, Bournvita, Nescafe (under Coffee, Tea, and Coco Class), Groundnut Oil, Palm Oil (under Oil and Fats Class), Egg, Fresh Milk, Powered Milk, Tin Milk (under Milk, Cheese, and Eggs Class), Soft Drinks e.g. Malt Guinness, Coco-cola, etc, Spirit (Local Production), Chelsea, Seaman Schnapps (under Spirit Class), Wine and Fruit e.g., Water Melon, Pineapple, Banana, Pawpaw, etc”, NBS said.
It puts annual average annual rate of food inflation for the twelve-month ending April 2024 over the previous twelve-month average at 32.74%, which was a 9.52% points increase from the average annual rate of change recorded in April 2023 (23.22%).
On a year-on-year basis, in the month of April 2024, the Urban inflation rate was 36.00%, which was 12.61% points higher compared to the 23.39% recorded in April 2023. On a month-on-month basis, the Urban inflation rate was 2.67% in April 2024, this was 0.50% points lower compared to March 2024 (3.17%). The rural inflation rate was 31.64% on a year-on-year basis; this was 10.50% higher compared to the 21.14% recorded in April 2023.
On a month-on-month basis, the Rural inflation rate in April 2024 was 1.92%, down by 0.95% points compared to March 2024 (2.87%).
For all items less farm produces and energy or Core inflation, which excludes the prices of volatile agricultural product, highest increases were recorded in prices of imputed rentals for housing, journey by motorcycle, bus journey within a city (under Passenger transport by road Class),consultation fee of a medical doctor, X-ray photography etc (under Medical Services Class), and Accommodation Services.
Inflation varies across states. In April 2024, all Items inflation rate on a Year-on-Year basis was highest in Kogi (40.84%), Bauchi (39.91%), Oyo (38.37%), while Borno (26.09%), Benue (27.53%) and Taraba (28.69%) recorded the slowest rise in headline inflation on Year-on-Year basis.
On a month-on-month basis, however,Lagos recorded highest (4.52%), Ondo (3.35%), Edo (3.27%), while Kano (0.30%), Ebonyi (0.97%) and Adamawa (1.25%) recorded the slowest rise in the month-on-month inflation.
“In April 2024, food inflation on a year-on-year basis was highest in Kogi (48.62%), Kwara (46.73%), Ondo (45.87%), while Adamawa (33.61%), Bauchi (33.85%) and Nasarawa (34.03%), recorded the slowest rise in food inflation on Year-on-Year basis. On a month on-month basis, however, April 2024 Food inflation was highest in Lagos (4.74%), Edo (4.06%), and Yobe (3.99%), while Kano (0.47%), Adamawa (0.98%) and Zamfara (1.50%) recorded the slowest rise in food inflation on month-on-month basis”, said NBS.
