Nigeria’s inflation rate has surged to 33.95% in May 2024, according to the latest data from the National Bureau of Statistics. “This represents a 0.26% increase from the previous month,” the bureau stated.
With headline inflation rising steadily since January, the Consumer Price Index report shows that higher food and transport prices are driving the inflation rate, which has reached a 28-year high.
Food Inflation Rate
“The Food inflation rate in May 2024 was 40.66% on a year-on-year basis, which was 15.84% points higher compared to the rate recorded in May 2023 (24.82%),” the report read. Food inflation has accelerated, driven by price increases in staples like potatoes, fish, and meat.
Jerrymusa.com reports that the consistent rise in inflation is eroding the purchasing power of Nigerian households, making it difficult for many to afford basic meals.
The National Bureau of Statistics notes that government policies, such as the removal of petrol subsidies, are contributing to the inflationary trend.
“The headline inflation rate (year-on-year basis) increased in May 2024 when compared to the same month in the preceding year (i.e., May 2023),” the report stated.
As a result, Nigeria’s inflation rate has risen by 13.5% since January, with a significant impact on the economy and households across the country.
The inflationary pressure has been building up since the beginning of the year, with prices of goods and services increasing steadily.
“The situation is affecting the standard of living of many Nigerians, who are struggling to cope with the rising cost of living,” said an economic analyst.
The consistent rise in inflation is a concern for policymakers, who must balance the need to control inflation with the need to stimulate economic growth.