Nigeria’s Inflation Rate Runs Wild, Jumps to 33.69%

Nigeria’s headline inflation rate maintained its uptrend, rising by 49 basis points to 33.69% year on year in April, according to data from the statistics office, up from 33.20% in March.

On a month-on-month basis, headline inflation eased further by 73 basis points to 2.29% from 3.02% in the previous month, the National Bureau of Statistics report showed. The contraction was associated with monetary policy tightening that shifted benchmark interest rate to 24.75%.

Food inflation edged higher in April by 52bps to 40.53% from 40.01% year on year. This surge was driven by increase in prices of Millet flour, Garri, Bread, Wheat Flour prepacked, Semovita

Other consumables items that pushed food index higher include Yam Tuber, Water Yam, cocoyam Coconut Oil, Palm Kernel Oil, Vegetable Oil, etc. (under Oil and fat), Dried Fish Sardine, Catfish Dried, Mudfish Dried.

On a month-on-month basis, food inflation slowed by 2.50%, relative to the 3.62% m/m recorded in the previous month. In the same vein, core inflation or all items less farm produce and energy rose by 94bps to 26.84% year on year in April from 25.90% year on year in March.

The highest increases were recorded in prices of Actual and Imputed Rentals for Housing, Journey by motorcycle, Bus Journey within a city among others. Elsewhere, the core index moderated by 34bps to 2.20% in April 2024 compared to the previous month when it settled at 2.54%.

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“In April 2024, the headline inflation rate increased to 33.69% relative to the March 2024 headline inflation rate which was 33.20%. Looking at the movement, the April 2024 headline inflation rate showed an increase of 0.49% points when compared to the March 2024 headline inflation rate.

“On a year-on-year basis, the headline inflation rate was 11.47% points higher compared to the rate recorded in April 2023, which was 22.22%. This shows that the headline inflation rate (year-on-year basis) increased in the month of April 2024 when compared to the same month in the preceding year (i.e., April 2023).

“Furthermore, on a month-on-month basis, the headline inflation rate in April 2024 was 2.29%, which was 0.73% lower than the rate recorded in March 2024 (3.02%). This means that in the month of April 2024, the rate of increase in the average price level is less than the rate of increase in the average price level in March 2024”, NBS said in its monthly report on consumer price index.

URBAN INFLATION

On a year-on-year basis, in the month of April 2024, the Urban inflation rate was 36.00%, which was 12.61% points higher compared to the 23.39% recorded in April 2023. On a month -on-month basis, the Urban inflation rate was 2.67% in April 2024, this was 0.50% points lower compared to March 2024 (3.17%).

The corresponding twelve-month average for the Urban inflation rate was 30.02% in April 2024. This was 8.53% points higher compared to the 21.50% reported in April 2023.

RURAL INFLATION

The Rural inflation rate in April 2024 was 31.64% on a year-on-year basis; this was 10.50% higher compared to the 21.14% recorded in April 2023. On a month-on-month basis, the rural inflation rate in April 2024 was 1.92%, down by 0.95% points compared to March 2024 (2.87%). The corresponding twelve-month average for the rural inflation rate in April 2024 was 26.38%. This was 6.20% higher compared to the 20.18% recorded in April 2023. Nigerian Executives Need Strategic Leadership to Thrive in Uncertain Landscape — TEXEM Faculty

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