Inflation Rate Hits 33.95%
In May 2024, Nigeria’s inflation rate surged to 33.95%, according to the latest report from the National Bureau of Statistics (NBS). This rise represents a 0.26% increase from April’s figure of 33.69%, continuing the upward trend seen throughout the year.
Significant Monthly Increase
The Consumer Price Index (CPI) report revealed that between January and May, headline inflation has increased significantly, from 29.90% in January to 33.95% in May. The NBS attributes this spike to escalating food and transport prices, which have reached their highest levels in over 28 years.
Year-on-Year Comparison
On a yearly data comparison, May 2024’s inflation rate is 11.54% higher than the 22.41% recorded in May 2023. This substantial increase underscores the persistent inflationary pressures affecting the economy. Despite the monthly inflation rate showing a slight decline to 2.14% in May from 2.29% in April, the overall trend remains concerning.
Food Prices Drive Inflation
Food inflation has played a crucial role in driving up the overall rate. The report highlighted that potatoes, fish, and meat contributed significantly to higher food prices. Food inflation rose to 40.66% in May, up from 40.3% in April, marking a notable increase.
Economic Challenges
The rising inflation poses significant challenges for the Nigerian economy, impacting household budgets and consumer purchasing power. The government and financial institutions face increasing pressure to implement measures that could help mitigate these inflationary trends.
Future Outlook
As Nigeria’s inflation rate continues to climb, experts warn of potential economic instability if corrective actions are not taken promptly. Monitoring the inflation trends closely and implementing strategic policies will be crucial in addressing this ongoing economic issue.
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