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Headline Inflation Surges to 33.95% in May

June 17, 2024
in Business
Headline Inflation Surges to 33.95% in May
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http://economicconfidential.com/

Headline Inflation Surges to 33.95% in May

Again, Nigeria’s inflation rate increased to 33.95 per cent in May 2024 according to the latest data from the National Bureau of Statistics.

This represents a month-over-month increase of 0.26 per cent points in the headline inflation rate from 33.69 per cent recorded in April, the NBS stated in the Consumer Price Index report released on Saturday.

The CPI measures the average change over time in the prices of goods and services consumed by people for day-to-day living. Between January and May, headline inflation has risen, surging from 29.90 per cent in January to 33.95 per cent in May, representing an increase of 13.5 per cent.

The report added that the inflation rate climbed to a more than 28-year high in May on higher food and transport prices.

The report read, “In May 2024, the headline inflation rate increased to 33.95% relative to the April 2024 headline inflation rate which was 33.69 per cent. Looking at the movement, the May 2024 headline inflation rate showed an increase of 0.26 per cent compared to the April 2024 headline inflation rate.

“On a year-on-year basis, the headline inflation rate was 11.54 per cent points higher compared to the rate recorded in May 2023, which was 22.41 per cent. This shows that the headline inflation rate (year-on-year basis) increased in May 2024 when compared to the same month in the preceding year (i.e., 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 per cent). 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 in April 2024.

Also, potatoes, fish and meat contributed to higher food prices. Food inflation quickened to 40.66 per cent in May from 40.3 per cent in April.

“The Food inflation rate in May 2024 was 40.66 per cent on a year-on-year basis, which was 15.84 per cent points higher compared to the rate recorded in May 2023 (24.82 per cent), the NBS report read.

In recent years, food prices have been on the rise across Nigeria. The situation deteriorated due to the impact of government policies such as the removal of subsidies on petrol, among others.

The upward trend in the prices of these staples and other products has weakened the purchasing power of many citizens, making it difficult for many households in the country to afford daily meals.

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