…As Food Inflation Hits 40.53%
Despite efforts by the Central Bank of Nigeria (CBN) and the fiscal authorities to moderate the rising general price level in the economy, the Consumer Price Index (CPI), which reflects the headline inflation rate, increased to 33.69% in April this year relative to the 33.20%. March 2024 headline inflation rate.
The National Bureau of Statistics (NBS) on Wednesday reported that looking at the movement, the April 2024 headline inflation rate showed an increase of 0.49% points month-on-month when compared to the preceding month’s inflation rate.
The statistics agency, in its ‘CPI and Inflation Report April 2024’ posted on its website, indicated that when analyzed 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%.
It noted that the pricing trend showed that the headline inflation rate (year-on-year basis) increased in the month under review when compared to the same month in the preceding year.
In addition, the Bureau reported that on a month-on-month basis, the headline inflation rate in April 2024 was 2.29%, which was 0.73% lower than the 3.02% rate recorded in March 2024, which 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 the preceding month.
A further decomposition of the CPI on categories basis reflected that the ‘All Items Index’ headline inflation rate increased to 33.69% relative to the 33.20% recorded in March 2024, representing an increase of 0.49% points month-on-month.
The Bureau clarified, however, that on a year-on-year basis, the headline inflation rate was 11.47% points higher compared to the 22.22% rate recorded in April 2023.
The ‘Urban Inflation’ rate for the month under review indicated that on a year-on-year basis, the Urban inflation rate was 36.00%, which was 12.61% points higher compared to the 23.39% recorded in April 2023.
The CPI report reflected that on a month-on-month basis, the Urban inflation rate was 2.67% in April 2024, this was 0.50% points lower compared to the 3.17% rate recorded in the preceding month.
The NBS also disclosed in the report that Rural Inflation rate in April 2024 was 31.64% on a year-on-year basis, which was 10.50% higher compared to the 21.14% recorded in April 2023, and that 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.
On the Food Inflation rate for the month under review, the ‘CPI and Inflation Report April 2024’showed that Food inflation rate surged to 40.53% on a year-on-year basis, which was 15.92% points higher compared to the 24.61% rate recorded in the corresponding month of last year.
The statistics agency attributed the rise in Food inflation on a year-on-year basis to increases in prices of Millet flour, Garri, Bread, Wheat Flour prepacked, Semovita (which are under Bread and Cereals Class), Yam Tuber, Water Yam, cocoyam (under Potatoes, and Yam and other Tubers Class).
Other items the Bureau linked to the increased Food inflation rate were Coconut Oil, Palm Kernel Oil, Vegetable Oil, etc (under Oil and fat), Dried Fish Sadine, Catfish Dried, Mudfish Dried (under Fish class), Beef Head, Beef Feet, Liver, Frozen Chicken (under Meat class), Mongo, Banana, Grapefruit (under Fruit Class), Lipton Tea, Bournvita, Milo (under Coffee, Tea and Cocoa Class).
It, however, reported that on a month-on-month basis, the Food inflation rate in April 2024 was 2.50% which showed a 1.11% decrease compared to the 3.62% rate recorded in March this year.
The Bureau further clarified that the fall in Food inflation on a month-on-month basis was caused by a fall in the rate of increase in the average prices of Yam, Water Yam, Irish Potatoes (under Potatoes, Yam & Other Tubers Class), Beer, Local Beer (under Tobacco Class), Milo, Bournvita, Nescafe (under Coffee, Tea, and Coco Class).
Other items the NBS listed that also accounted for the decrease in the Food inflation in April this year included Groundnut Oil, Palm Oil (under Oil and Fats Class), Egg, Fresh Milk, Powered Milk, Tin Milk (under Milk, Cheese, and Eggs Class), Soft Drinks e.g. Malt Guinness, Coco-cola, etc, Spirit (Local Production), Chelsea, Seaman Schnapps (under Spirit Class), Wine and Fruit e.g., Water Melon, Pineapple, Banana, Pawpaw, etc.
