In June 2024, Nigeria experienced a rise in its headline inflation rate, reaching 34.19%, a slight increase from 33.95% recorded in May 2024. This marks a 0.24% increase from the previous month. On a year-on-year basis, the headline inflation rate was 11.40% points higher than the 22.79% recorded in June 2023, indicating a significant inflationary pressure over the past year.
Monthly and Yearly Inflation Trends
Month-on-month, the inflation rate in June 2024 was 2.31%, which is a 0.17% increase from May 2024’s 2.14%. This indicates that the rate of increase in average prices in June 2024 was higher compared to May 2024.
The divisional contributions to the headline index were led by Food & Non-Alcoholic Beverages, which contributed 17.71% year-on-year and 1.20% month-on-month. Other notable contributions on a yearly basis included Housing, Water, Electricity, Gas & Other Fuel at 5.72%, and Clothing & Footwear at 2.62%. On a monthly basis, Housing, Water, Electricity, Gas & Other Fuel contributed 0.39%, while Clothing & Footwear contributed 0.18%.
**Sectoral Breakdown of Contributions:**
-Year-on-Year:
– Food & Non-Alcoholic Beverages: 17.71%
– Housing, Water, Electricity, Gas & Other Fuel: 5.72%
– Clothing & Footwear: 2.62%
– Transport: 2.23%
– Furnishings & Household Equipment & Maintenance: 1.72%
– Education: 1.35%
– Health: 1.03%
– Miscellaneous Goods & Services: 0.57%
– Restaurant & Hotels: 0.41%
– Alcoholic Beverage, Tobacco & Kola: 0.37%
– Recreation & Culture: 0.23%
– Communication: 0.23%
– Month-on-Month:
– Food & Non-Alcoholic Beverages: 1.20%
– Housing, Water, Electricity, Gas & Other Fuel: 0.39%
– Clothing & Footwear: 0.18%
– Transport: 0.15%
– Furnishings & Household Equipment & Maintenance: 0.12%
– Education: 0.09%
– Health: 0.07%
– Miscellaneous Goods & Services: 0.04%
– Restaurant & Hotels: 0.03%
– Alcoholic Beverage, Tobacco & Kola: 0.03%
– Recreation & Culture: 0.02%
– Communication: 0.02%
Annual Average CPI Change
The average Consumer Price Index (CPI) for the twelve-month period ending June 2024 increased by 30.00%, which is 8.45% higher compared to the 21.54% recorded in June 2023.
**Urban and Rural Inflation Rates**
Urban Inflation: The urban inflation rate for June 2024 was 36.55%, a rise of 12.23% from June 2023’s 24.33%. On a month-to-month basis, urban inflation was 2.46% in June 2024, up by 0.11% from 2.35% in May 2024. The twelve-month average for urban inflation stood at 32.08% in June 2024, an increase of 9.70% from 22.38% in June 2023.
Rural Inflation: The rural inflation rate in June 2024 was 32.09% on a year-on-year basis, up by 10.71% from 21.37% in June 2023. Month-on-month, rural inflation was 2.17%, showing an increase of 0.23% from May 2024’s 1.94%. The twelve-month average for rural inflation in June 2024 was also notably higher.
Bottom Line
The persistent rise in Nigeria’s inflation rate highlights ongoing economic challenges, with significant contributions from essential sectors such as food, housing, and utilities. The higher rates of urban and rural inflation reflect widespread inflationary pressures impacting various regions and demographics across the country. As inflation continues to climb, policymakers and stakeholders face increasing pressure to implement effective measures to stabilize prices and support economic growth.
