Inflation Surges to 33.95% in May 2024 Amidst Soaring Food Prices
By Patience Ikpeme
Nigeria’s inflationary surge continued unabated in May 2024, with the inflation rate peaking at 33.95%, up from 33.69% in April, according to the National Bureau of Statistics’ (NBS) Consumer Price Index (CPI) report released on Saturday.
This represents an increase of 0.26 percentage points from the previous month as Nigerians grapple with the exceedingly high cost of food items and essential commodities.
The headline inflation rate on a year-on-year basis was 11.54 percentage points higher compared to May 2023, which recorded an inflation rate of 22.41%. “This shows a significant increase in the headline inflation rate year-on-year,” the report noted. Despite this, the month-on-month headline inflation rate in May 2024 was 2.14%, a decrease of 0.15 percentage points from April 2024’s 2.29%, indicating a slower rate of increase in average prices compared to the previous month.
Food prices continued their upward trend in May 2024, with food inflation reaching 40.66% year-on-year, a substantial rise from 24.82% in May 2023. “The rise in food inflation year-on-year was driven by increases in prices of items such as Semovita, oatflake, Yam flour, garri, beans, Irish potatoes, yams, water yams, palm oil, vegetable oil, stockfish, mudfish, crayfish, beef head, chicken, pork head, and bush meat,” the NBS stated.
On a month-on-month basis, food inflation in May 2024 was 2.28%, showing a decrease of 0.22 percentage points from April 2024’s 2.50%. The NBS attributed this decline to a fall in the rate of increase in average prices of items like palm oil, groundnut oil, yam, Irish potatoes, cassava, wine, Bournvita, Milo, and Nescafe.
The average annual rate of food inflation for the twelve months ending May 2024 was 34.06%, an increase of 10.41 percentage points from the 23.65% recorded in May 2023.
Core inflation, which excludes volatile agricultural produce and energy prices, stood at 27.04% in May 2024 on a year-on-year basis, up by 7.21 percentage points from 19.83% in May 2023. Significant price increases were recorded in rents, bus journeys, taxi fares, accommodation services, and medical services. The month-on-month core inflation rate also fell to 2.01% in May 2024 from 2.20% in April 2024, showing a decline of 0.18 percentage points. The average twelve-month annual inflation rate was 23.45% for the period ending May 2024, higher by 5.34 percentage points than the 18.11% recorded in May 2023.
Inflationary pressure varied across states. On a year-on-year basis, Bauchi recorded the highest all-items inflation rate at 42.30%, followed by Kogi (39.38%) and Oyo (37.73%). Borno (25.97%), Benue (27.74%), and Delta (28.67%) recorded the slowest rise in headline inflation. Month-on-month, Kano saw the highest increase at 4.24%, followed by Gombe (4.06%) and Bauchi (3.75%). Ondo (0.57%), Kwara (1.19%), and Yobe (1.24%) had the slowest month-on-month inflation rates.
In terms of food inflation, Kogi (46.32%), Ekiti (44.94%), and Kwara (44.66%) recorded the highest year-on-year increases. Adamawa (31.72%), Bauchi (34.35%), and Borno (34.74%) saw the slowest rise in food inflation. Month-on-month, Gombe led with a 4.88% increase, followed by Kano (4.68%) and Bayelsa (3.62%). Ondo (0.02%), Yobe (0.95%), and Adamawa (1.02%) recorded the slowest month-on-month food inflation increases.
The NBS’s report highlights the continuing economic challenges faced by Nigerians, particularly with the steep rise in food and essential commodity prices, and underscores the need for strategic interventions to curb the rising inflation.
