Nigeria’s inflation rate surged to 34.19% in June 2024, the highest level in over a year, driven by soaring food prices. This marks a 0.24 percentage point increase from the 33.95% recorded in May 2024.
The National Bureau of Statistics (NBS) revealed that inflation continues to escalate, with June’s rate at 34.91%, surpassing analysts’ estimates of 34%. Food inflation alone spiked to a record 40.87%, up from May’s 40.66%.
On a year-on-year basis, the headline inflation rate increased by 11.40 percentage points from 22.79% in June 2023. Month-on-month, the rate also rose to 2.31% in June 2024, compared to 2.14% in May.
The NBS attributed the inflation surge to rising costs of food, transportation, and housing. Significant contributors to food inflation included items like millet, garri, yams, and various oils. Core inflation, which excludes food and energy, rose to 27.40% year-on-year, with notable price hikes in rents, transportation, and medical services.
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In response, the Nigerian government announced a 150-day duty-free import window for essential food items such as maize, wheat, and rice, aiming to stabilize prices. Plans are also underway to collaborate with states to expand land cultivation.
Despite these measures, analysts warn that the persistently high inflation could have severe consequences for the economy and consumers. As policymakers grapple with these inflationary pressures, the public eagerly awaits further measures to address the underlying factors driving the cost of living higher.
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