Nigeria’s inflation rate eases after fifth consecutive rise

Nigeria’s annual inflation rate eased for the first time in five months after a persistent rise.

Inflation rate eased to 33.40 per cent in July 2024 compared to 34.19 per cent in June, the National Bureau of Statistics (NBS) announced Thursday.

National Bureau of Statistics (NBS)

According to the NBS, the July headline inflation rate showed a decrease of 0.8 per cent points when compared to the June 2024 headline inflation rate. The lowest figure in 2024 was 29.90 per cent, recorded in January.

On a year-on-year basis, the headline inflation rate was 9.32 per cent points higher compared to the rate recorded in July 2023, which was 24.08 per cent.

“This shows that the headline inflation rate (year-on-year basis) increased in July 2024 compared to the same month in the preceding year (i.e., July 2023),” the NBS said.

The bureau also said on a month-on-month basis, the headline inflation rate in July 2024 was 2.28 per cent, which was 0.03 per cent lower than the rate recorded in June 2024 (2.31 per cent).

This, it said, means that in July 2024, the rate of increase in the average price level was lower than the rate of increase in the average price level in June 2024.

According to the report, the food inflation rate in July 2024 was 39.53 per cent on a year-on-year basis, 12.55 per cent points higher compared to the rate recorded in July 2023 (26.98 per cent).

The country’s food prices have been rising sharply in recent years, a situation that worsened in 2023 when President Bola Tinubu removed petrol subsidies and allowed the naira to float.

President Bola Ahmed Tinubu

This economic shift has led to a steep increase in the cost of staple foods pushing many Nigerians further into poverty and heightening food insecurity.

The persistent surge in prices over the past year has led to the closure of several farms and businesses, with many agricultural producers scaling back their output due to insecurity and unpredictable weather conditions affecting rural areas.

In response, Mr Tinubu declared a state of emergency on food insecurity in July last year, aiming to combat rising food costs. Despite these efforts, food inflation has continued unabated.

Last month, Mr Tinubu unveiled some proactive measures meant to address skyrocketing food prices in the country. Amongst it, is the decision to suspend duties, tariffs, and taxes on the importation of essential food items such as beans, wheat, and husked brown rice.

More details later…..