Nigeria’s misery and poverty level do not appear to be slowing down yet, as her inflation rate increased to 33.95 percent in May 2024, the National Bureau of Statistics disclosed in its latest data.
This represents an increase of 0.26% points when compared to the April 2024 headline inflation rate, according to the NBS Consumer Price Index report released on Saturday.
The data revealed that on a year-on-year basis, the headline inflation rate was 11.54% points higher compared to the rate recorded in May 2023, which was 22.41%.
This shows that the headline inflation rate (year-on-year basis) increased in May 2024 when compared to May 2023.
On the contrary, on a month-on-month basis, the headline inflation rate in May 2024 was 2.14%, which was 0.15% lower than the rate recorded in April 2024 (2.29%).
This, according to the NBS, 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 in April 2024.
The NBS report also revealed that the Food inflation rate in 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%).
It added that 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).
“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 Potatoe, Cassava Tuber (under Potatoes, Yam & Other Tubers Class), Wine, Bournvita, Milo, Nescafe (under Coffee, Tea and Coco Class).
“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%).”
Interest Rate Rises
In its bid to curb the surge of inflation, the Central Bank of Nigeria (CBN) had in its Monetary Policy Committee meeting in May raised the interest rate by 150 basis points from 24.75 per cent to 26. 25 per cent.
The MPC agreed to increase the Monetary Policy Rate(MPR) for the third straight time to rein in the country’s soaring inflation levels pegged at 33.69% in April 2024.