Inflation Soars to 34.19% Amid Higher Energy, Food Prices

•Severe in Bauchi, Kogi, Oyo, others  

• Food index hits 40.87%

James Emejo in Abuja

The Consumer Price Index (CPI), which measures the rate of change in prices of goods and services, further rose to 34.19 per cent in June, compared to 33.95 per cent in May, the National Bureau of Statistics (NBS) stated yesterday.

Year-on-year, headline inflation was 11.40 per cent higher than 22.79 per cent recorded in June 2023.

Food inflation increased by 15.62 per cent year-on-year to 40.87 per cent, compared to 25.25 per cent in June 2023.

Month-on-month, the food index also increased to 0.26 per cent to 2.55 per cent, compared to 2.28 per cent in May.

Similarly, all items, less farm produce and energy or core inflation, which excludes the prices of volatile agricultural produces and energy, increased to 27.40 per cent year-on-year in June, which was up by 7.34 per cent, compared to 20.06 per cent in June 2023.

Month-on-month, the core index increased by 0.05 per cent to 2.06 per cent in June, compared to 2.01 per cent in May.

However, food inflation was attributed to increases in prices of millet, whole grain, garri, guinea corn, etc. (bread and cereals class), yam, water yam, coco yam (potatoes, yam and other tubers class).

Others were groundnut oil, palm oil, etc. (oil and fats class) and catfish dried, dried fish-sardine, mudfish (fish class), among others.

On the other hand, core inflation resulted from highest price increases in rents (actual and imputed rentals for housing class), journey by motorcycle, bus journey intercity (under passenger transport by road class).

Other contributors included accommodation service, consultation fee of a medical doctor, laboratory service, x-ray photography (under medical services class), and pharmaceutical products.

Year-on-year, urban inflation rose by 12.23 per cent to 36.55 per cent, compared to 24.33 per cent in June 2023. On month-on-month basis, the index increased to 2.46 per cent, from 2.35 per cent in June.

Rural inflation rose to 32.09 per cent, a 10.71 per cent year-on-year increase, compared to 21.37 per cent in June 2023.

Month-on-month, rural inflation stood at 2.17 per cent, compared to 1.94 per cent in May.

At state level, the all Items inflation, year-on-year was highest in Bauchi (43.95 per cent), Kogi (39.91 per cent), and Oyo (39.15 per cent), while Borno (25.90 per cent), Benue (27.52 per cent), and Katsina (29.21 per cent) recorded the slowest rise.

On month-on-month basis, however, the headline index recorded highest increases in Yobe (3.79 per cent), Abuja (3.45 per cent), Ondo (3.38 per cent), while Nasarawa (0.71 per cent), Osun (1.19 per cent) and Kano (1.27 per cent) recorded the slowest rise.

On annualised basis, food inflation was highest in Edo (47.34 per cent), Kogi (46.37 per cent), Cross River (45.28 per cent), while Nasarawa (34.31 per cent), Bauchi (34.78 per cent) and Adamawa (35.96 per cent), recorded the slowest rise.

Month-on-month, the highest food prices were recorded in Yobe (4.75 per cent), Adamawa (4.74 per cent), and Taraba (4.12 per cent), while Nasarawa (0.14 per cent), Kano (0.96 per cent) and Lagos (1.25 per cent) recorded the slowest rise.