Inflation Trends in June 2024
In June 2024, Nigeria’s headline inflation rate rose to 34.19%, a 0.24 percentage point increase from May’s 33.95%. This rise reflects a significant year-on-year increase of 11.40 percentage points compared to June 2023. Such statistics highlight a sharp upward trajectory in the cost of living, affecting various sectors of the economy.
Detailed CPI Methodology
The National Bureau of Statistics uses a detailed approach to calculate the Consumer Price Index (CPI), tracking average price changes in goods and services. Utilizing economic theory, sampling, and statistics, the CPI gathers data from 10,534 informants across the nation. This extensive data collection covers 740 goods and services, offering insights into inflation trends in urban and rural areas. The CPI provides a comprehensive snapshot of price movements, reflecting the economic conditions experienced by consumers.
Divisional Contributions to Inflation
The inflation rate’s rise is attributed to increased prices across several divisions. Notably, food and non-alcoholic beverages rose by 17.71%, while housing, water, electricity, gas, and other fuels increased by 5.72%. Other significant contributors include clothing and footwear, transport, and health services, showcasing a broad impact across essential and non-essential goods and services.
Urban vs. Rural Inflation Rates
In June 2024, urban areas saw a higher year-on-year inflation rate of 36.55%, significantly more than rural areas’ 32.09%. This disparity highlights the diverse economic pressures across regions. Factors such as population density and local economic activities influence these regional differences. Such variations emphasize the uneven economic impacts felt throughout the country.
Food Inflation Specifics
In June 2024, food inflation reached a high of 40.87% year-on-year, spurred by rising prices in staples like millet, yam, and oils. The month-on-month food inflation rate also climbed, reflecting ongoing increases in food prices. This persistent rise in food costs significantly strains household budgets. These escalating prices highlight the continuous economic pressure on families to meet basic needs.
State-Specific Inflation Insights
The CPI report provides detailed insights into state-specific inflation rates, with Bauchi, Kogi, and Oyo experiencing the highest year-on-year increases. Such data is crucial for policymakers and economists to tailor interventions and understand the localized impacts of inflation, ensuring targeted measures to mitigate these effects.
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