CPI Report: Food inflation tops as Nigeria’s headline inflation hits 33.95 percent May 2024

*The National Bureau of Statistics discloses the average annual rate of food inflation for 12 months ending May 2024 over the previous 12-month average was 34.06 percent, which was a 10.41 percent points increase from the average annual rate of 23.65 percent change recorded May last year

Isola Moses | ConsumerConnect

Nigeria’s National Bureau of Statistics (NBS) has disclosed in its latest data the country’s headline inflation rate increased to 33.95 percent May 2024.

According to the NBS Consumer Price Index (CPI) report released Saturday, June 15, this figure represents an increase of 0.26 percent points, compared to the April 2024 headline inflation rate.

The data also indicated that on a year-on-year basis, the headline inflation rate was 11.54 percent points higher, compared to the 22.41 percent rate recorded May 2023.

This shows that the headline inflation rate (year-on-year basis) increased May this year in comparison with that of May 2023.

ConsumerConnect reports the Central Bank of Nigeria (CBN), in a bid to curb the surge of inflation in the economy, had during its Monetary Policy Committee (MPC) meeting May this year raised the country’s interest rate by 150 basis points from 24.75 percent to 26. 25 percent.

The MPC thus agreed to jack up the Monetary Policy Rate (MPR) for the third straight time to curb the high inflation levels pegged at 33.69 percent April 2024.

However, on a month-on-month basis, the Nigeria headline inflation rate May 2024 was 2.14%, which was 0.15% lower than the rate recorded in April 2024 (2.29%).

The NBS noted this means that in May 2024, the rate of increase in the average price level is less than the rate of increase in the average price level April 2024.

The NBS report also revealed that the food inflation rate May 2024 was 40.66% on a year-on-year basis, which was 15.84% points higher compared to the rate recorded in May 2023 (24.82%).

The Bureau further stated the rise in food inflation on a year-on-year basis was caused by increases in prices of the following items: Semovita, oatflake, yam flour prepackage, garri, bean, etc. (which are under bread and cereals class), irish potatoes, yam, water yam, etc (under potatoes, yam and other tubers class), palm oil, vegetable oil, etc (under oil and fat), stockfish, mudfish, crayfish, etc (under Fish class), Beef Head, Chicken-live, Pork Head, Bush Meat, etc (under Meat class).

It also said: “Like the month-on-month headline inflation, the month-on-month Food inflation rate in May 2024 was 2.28%, which also shows a decrease of 0.22% compared to the rate recorded in April 2024 (2.50%).

“The fall in the Food inflation on a month-on-month basis was caused by a fall in the rate of increase in the average prices of palm oil, groundnut oil (under oil and fats class), yam, Irish potatoes, cassava tuber (under potatoes, yam & other tubers class), wine, bournvita, milo, nescafe (under coffee, tea and coco class).”

The NBS noted: “The average annual rate of Food inflation for the twelve months ending May 2024 over the previous twelve-month average was 34.06%, which was a 10.41% points increase from the average annual rate of change recorded in May 2023 (23.65%).”

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