Further rate hike looms as Nigeria's inflation quickens on food prices

BREAKING NEWSJuly 15, 2024 at 12:36 PM UTC

TLDR

Nigeria's annual inflation rate rises to 34.2% in June 2024, marking the 18th consecutive month of increase.
Consumer prices experienced a month-on-month rise of 2.31% in June, with food inflation reaching 40.87% year-on-year.
The inflation data suggests a potential interest-rate hike at the upcoming central bank meeting.

Nigeria’s annual inflation has quickened for the 18th consecutive month, raising the likelihood of another interest-rate increase when the central bank meets next week.

Consumer prices rose to 34.2% in June, up from 34% in May, according to data from the National Bureau of Statistics. On a month-on-month basis, the headline inflation rate in June 2024 was 2.31%, 0.17 percentage points higher than the rate recorded in May 2024 (2.14%).

Food inflation was at 40.87% year-on-year, compared to 40.66% in May 2024. On a month-on-month basis, the food inflation rate in June 2024 was 2.55%, reflecting a 0.26 percentage point increase from May 2024’s rate of 2.28%.

Key Takeaways

In response to the rising prices of essential commodities, the Federal Government has introduced several measures to address the challenge. Recently, it suspended duties, tariffs, and taxes on the importation of maize, husked brown rice, wheat, and cowpeas through the country’s land and sea borders for 150 days. Additionally, the government approved the procurement of 2,000 tractors and 1,200 trailers and established a committee to propose solutions to the ongoing food crisis in the nation. Experts have identified insecurity, lack of equipment, and other issues as major challenges affecting food production in Nigeria.

Nigeria

Inflation

CBN

Consumer Prices

Interest Rates

Economy

NBS

Central Bank

Food Prices