By Hosea Parah, Abuja
Inflation in Nigeria continues to soar as the Consumer Price Index (CPI) reveals a significant increase in the country’s headline inflation rate. According to the latest data from the National Bureau of Statistics (NBS), the headline inflation rate for April 2024 rose to 33.69%, compared to the previous month’s rate of 33.20%.
On a year-on-year basis, the headline inflation rate in April 2024 was 11.47% points higher than the rate recorded in April 2023, which stood at 22.22%. This indicates a substantial increase in the average price level over the past year.
Analyzing the inflation rate on a month-on-month basis, April 2024 saw a 2.29% increase, which was 0.73% lower than the rate recorded in March 2024 (3.02%). This suggests that the rate of price increase in April was slightly lower compared to the previous month.
The rise in inflation is primarily driven by food prices, as the Food Inflation rate for April 2024 reached 40.53% on a year-on-year basis. This is a significant increase of 15.92% points compared to the rate recorded in April 2023 (24.61%). The prices of essential food items like millet flour, garri, bread, yam tuber, coconut oil, and various meats have contributed to the surge in food inflation.
On a month-on-month basis, the Food Inflation rate in April 2024 decreased to 2.50%, indicating a 1.11% decrease compared to March 2024 (3.62%). The decline in food inflation can be attributed to the decrease in the rate of increase in prices for items such as yam, potatoes, beer, coffee, and groundnut oil.
The “All items less farm produces and energy,” or Core inflation rate, which excludes volatile agricultural produces and energy, stood at 26.84% in April 2024 on a year-on-year basis. This represents a 6.87% increase compared to the rate recorded in April 2023 (19.96%). The highest increases in core inflation were observed in housing rentals, transportation costs, medical services, and accommodation services.
In terms of regional analysis, urban areas experienced a higher inflation rate compared to rural areas. The Urban inflation rate for April 2024 was 36.00% on a year-on-year basis, while the Rural inflation rate stood at 31.64%. On a month-on-month basis, the urban inflation rate was 2.67%, slightly lower than the rural inflation rate of 1.92%.
The NBS emphasizes that the CPI is weighted by consumption expenditure patterns, which vary across states and locations. Therefore, interstate comparisons of consumption baskets may be misleading.
The government and relevant stakeholders must continue to monitor and address the factors contributing to the high inflation rate. Measures such as improving agricultural productivity, stabilizing food prices, and implementing effective economic policies will be crucial in curbing inflation and ensuring the well-being of the Nigerian population.