Nigeria’s inflation rate climbed to a new high in April 2024, reaching 33.69 per cent, according to latest data released by the National Bureau of Statistics (NBS) on Wednesday.
The latest jump in inflation figure represents a significant increase from the 33.2 per cent recorded in March and a substantial jump compared to April 2023 when it was 22.22 per cent.
The data released by the NBS showed that on a month-on-month basis, April 2024 saw a 2.29 per cent increase, slightly lower than March 2024’s 3.02 per cent rise.
While the month-to-month increase slowed slightly, the overall trend, according to analysts, remained concerning.
The cost of food in the country experienced a notable 40.53 per cent increase in April 2024 compared to the previous year, marking the highest level of food inflation on record.
On a year-on-year basis, food inflation hit 40.53 per cent, significantly surpassing April 2023’s rate of 24.61 per cent.
Despite this surge, the month-on-month food inflation rate in April 2024 decreased to 2.50 per cent from 3.62 per cent in March.
According to the NBS, increases in prices of Millet flour, Garri, Bread, Wheat Flour prepacked, Semovita (which are under Bread and Cereals Class), Yam Tuber, Water Yam, cocoyam (under Potatoes, Yam and other Tubers Class), Coconut Oil, Palm Kernel Oil, Vegetable Oil, etc. (under Oil and fat), Dried Fish Sardine, Catfish Dried, Mudfish Dried (under Fish class), Beef Head, Beef Feet, Liver, Frozen Chicken (under Meat class), Mango, Banana, Grapefruit (under Fruit Class), Lipton Tea, Bournvita, Milo (under Coffee, Tea and Cocoa Class) triggered the rise in food prices.
In the same vein, core inflation (All items less farm produce and energy) rose by 94 basis points to 26.84 per cent year on year compared to March Y/Y figure of 25.9 per cent. The highest increases were recorded in prices of Actual and Imputed Rentals for Housing, Journey by motorcycle, Bus Journey within a city (under Passenger Transport by Road Class), Consultation Fee of a medical doctor, X-ray photography etc. (under Medical Services Class), and accommodation services.
Elsewhere, the core index moderated by 34bps to 2.2 per cent month on month in April 2024 compared to the previous month figure of 2.54 per cent.
Overall, analysts say this increase paints a picture of a challenging economic situation in Nigeria, with rising inflation putting pressure on household budgets.