Nigeria's Inflation Hits 34.19%: Highest in Years

The inflation rate in Nigeria soars to 34.19 percent...

Nigeria's inflation rate surges to 34.19%, a five-month high, driven by food inflation and economic growth, exacerbating the cost of living crisis for citizens.

The cost of living issue for citizens of Nigeria, the most populous country in Africa, has gotten worse as a result of the country's annual inflation rate rising to 34.19 percent for the fifth consecutive month.

According to data made public on Monday, July 15, by the National Bureau of Statistics (NBS), the June result represents a 0.24 percent increase from the 33.95 percent recorded in May. In January of 2024, the lowest recorded rate of inflation was 29.90 percent.

The headline inflation rate in June 2023 was 11.40 percentage points higher year over year than it was in June 2023 (22.79 percent).

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

Additionally, the agency stated that in June 2024, the headline inflation rate increased by 0.17 percent from May 2024 (2.14 percent) to 2.31 percent on a month-over-month basis.

This suggests that, in June 2024, the average price level climbed more quickly than it did in May 2024.

According to the research, in June 2024, the annual rate of food inflation was 40.87 percent; this is a 15.62 percentage point increase from June 2023, when it was 25.25 percent.

Several factors contribute to the widespread observation of higher inflation rates in emerging nations. The demand for goods and services rises as a result of these economies' typically quicker expansion. Price increases typically result in inflation if the supply cannot keep up with the spike in demand.

The lack of a well-established framework for monetary policy is another concern. This may result in currency manipulation intended to achieve immediate objectives, such lowering export expenses. Furthermore, printing too much money can weaken the value of the currency and increase inflationary pressures.