Inflation defies CBN intervention, rose to 34.19% in June – NBS
By Patience Ikpeme
Nigeria inflation trend continues to defies monetary policy measures, with June 2024 inflation settling at 34.19% on the back of consistent rise in food prices and other essential commodities, according to Consumer Price Index (CPI) June report by National Bureau of statistics (NBS).
The June 2024 figure is relative to the May 2024 headline inflation of 33.95%. According to NBS, food inflation component in June 2024 stood at 40.87% on a year-on-year basis, indicating 15.62% points higher compared to the rate recorded in June 2023 (25.25%). Similarly, on a month-on-month basis, food inflation rate in June 2024 was 2.55%, indicating 0.26% increase compared to the rate recorded in May 2024 (2.28%).
“Food inflation on a year-on-year basis was caused by increases in prices of the following items: millet whole grain, garri, guinea corn, etc (bread and cereal class), yam,water yam, coco yam (potatoes, yam & other tubers class),groundnut oil, palm oil, etc (oil & fats class) and catfish dried, dried fish-sadine, mudfish (fish class), etc”.
“On a month-on-month basis, the Food inflation rate in June 2024 was 2.55% which shows a 0.26% increase compared to the rate recorded in May 2024 (2.28%). The rise in food inflation on a Month-on-Month basis was caused by the rise in the rate of increase in the average prices of Groundnut Oil, Palm Oil, etc (Oil & Fats Class), Water Yam, Coco Yam, Cassava, etc (Potatoes, Yam & Other Tubers Class), Tobacco, Catfish Fresh, Croaker, Mudfish Fresh, Snail, etc, (Fish Class)”, explained NBS.
The average annual rate of food inflation for the twelve months ending June 2024 over the previous twelve-month average was 35.35%, which was an 11.31% points increase from the average annual rate of change recorded in June 2023 (24.03%).
Both urban and rural inflation were also affected proportionally according to NBS. “On a year-on-year basis, in the month of June 2024, the urban inflation rate was 36.55%, this was 12.23% points higher compared to the 24.33% recorded in June 2023. On a month-onmonth basis, the Urban inflation rate was 2.46% in June 2024, this was 0.11% points higher compared to May 2024 (2.35%). The corresponding twelve-month average for the Urban inflation rate was 32.08% in June 2024. This was 9.70 % points higher compared to the 22.38% reported in June 2023”
For rural inflation, it was 32.09% on a year-on-year basis in June,2024. This was 10.71% higher compared to the 21.37% recorded in June 2023. “On a month-on-month basis, the Rural inflation rate in June 2024 was 2.17%, up by 0.23% points compared to May 2024 (1.94%).
The corresponding twelve-month average for the Rural inflation rate in June 2024 was 28.15%. This was 7.39% higher compared to the 20.76% recorded in June 2023”, NBS disclosed.
The CPI varies across states, NBS disclosed. In June 2024, all Items inflation rate on a Year-on-Year basis was highest in Bauchi (43.95%), Kogi (39.91%), and Oyo (39.15%), while Borno (25.90%), Benue (27.52%) while Katsina (29.21%) recorded the slowest rise in headline inflation on year-on-year basis.
On a month-on-month basis,highest increases was Yobe (3.79%), Abuja (3.45%), Ondo (3.38%), while Nasarawa (0.71%), Osun (1.19%) and Kano (1.27%) recorded the slowest rise on month-on-month inflation. In June 2024 , food inflation on a Year-on-Year basis was highest in Edo (47.34%), Kogi (46.37%), Cross River (45.28%), while Nasarawa (34.31%), Bauchi (34.78%) and Adamawa (35.96%), recorded the slowest rise in Food inflation on Year-on-Year basis.
On a month on -month basis, however, June 2024 Food inflation was highest in Yobe (4.75%), Adamawa (4.74%), and Taraba (4.12%), while Nasarawa (0.14%), Kano (0.96%) and Lagos (1.25%) recorded the slowest rise in Food inflation on Month-on-Month basis.
The Central Bank using its tightening monetary policy instrument is unable to rein in inflation despite consistent hike in Monetary Policy Rate ( MPR) aimed at curbing money supply.
Before the NBS release of the inflation report Monday, Some economic watchers projected that inflation would maintain its upward movement but at a slower pace as seen in recent months.
