Nigeria continues to grapple with soaring inflation rates, with the latest data from the National Bureau of Statistics revealing alarming figures for June 2024. Headline inflation surged to 34.91%, surpassing analysts’ earlier estimates of 34%. This marks an increase of 0.24 percentage points from May 2024, and a significant rise of 11.40 percentage points compared to June 2023.
Food inflation, a critical component affecting everyday Nigerians, rose even more sharply to 40.89% year-on-year in June, up from 40.66% in May. This spike was driven by substantial increases in prices across essential food categories such as millet, garri, yam, various oils, and fish products. On a month-on-month basis, food inflation increased by 2.55%, exceeding the 2.28% recorded in May.
Core inflation, which excludes volatile food and energy prices, also climbed to 27.40% year-on-year in June, up from 27.04% in May. This increase was attributed to higher costs in categories including housing rents, transportation services (such as motorcycle and bus journeys), and medical expenses like consultation fees and pharmaceutical products. On a monthly basis, core inflation edged up by 0.05 percentage points to 2.06% in June, compared to 2.01% in May.
The data underscores the severe economic challenges facing Nigeria, with inflationary pressures eroding purchasing power and worsening the cost of living for citizens. The government faces an uphill task in addressing these issues amidst broader economic uncertainties and global commodity price fluctuations.
