By Anthony Otaru, Abuja
The latest data from the National Bureau of Statistics (NBS) indicates that the headline inflation rate for June 2024, increased to 34.19 per cent from 33.95 per cent recorded in May 2024.
In its Consumer Price Index June 2024, the statistics bureau noted that the June inflation rate also showed an increase of 0.24 percentage points when compared to the May 2024 headline inflation rate.
The NBS gave the figures yesterday the consumer price report posted on its website
The report also indicates that on a year-on-year basis, the headline inflation rate was 11.40 per cent higher compared to the rate recorded in June 2023, which was 22.79percent
“Furthermore, on a month-on-month basis, the headline inflation rate in June 2024 was 2.31 percent which was 0.17 percent higher than the rate recorded in May 2024 (2.14%). This means that in June 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in May 2024,” the report stated.
According to the report, food prices continued to drive inflation upward in June, with the rates standing at 40.87 per cent on a year-on-year basis, which was 15.62 per cent points higher compared to the rate recorded in June 2023 (25.25 per cent)
The NBS stated that increases in the prices of Millet Whole grain, Garri, Guinea corn, etc (Bread and Cereals Class), Yam, Water Yam, Coco Yam (Potatoes, Yam & Other Tubers Class), among others was a contributing factor in the increase.
On a month-on-month basis, the food inflation rate in June 2024 was 2.55 per cent showing a 0.26 percent increase compared to 2.28 per cent recorded in May 2024.
The rise was caused by the rise in the rate of increase in the average prices of groundnut oil, palm oil, etc.
“The average annual rate of Food inflation for the twelve months ending June 2024 over the previous twelve-month average was 35.35 per cent which was an 11.31 per cent increase from the average annual rate of change recorded in June 2023 (24.03 per cent),” it said.
On a state-by-state basis, food inflation on a Year-on-Year basis was highest in Edo (47.34 per cent), Kogi (46.37 per cent), Cross River (45.28 per cent), while Nasarawa (34.31 per cent), Bauchi (34.78 per cent) and Adamawa (35.96 per cent), recorded the slowest rise in food inflation on Year-on-Year basis.
On a Month-on-Month basis, however, it was highest in Yobe (4.75 per cent), Adamawa (4.74 per cent), and Taraba (4.12 per cent), while Nasarawa (0.14 per cent), Kano (0.96 per cent) and Lagos (1.25 per cent) recorded the slowest rise in food inflation on a month-on-month basis.
In June 2024, the All Items inflation rate on a Year-on-Year basis was highest in Bauchi (43.95 per cent), Kogi (39.91 per cent), and Oyo (39.15 per cent), while Borno (25.9 per cent), Benue (27.52 per cent) and Katsina (29.21 per cent) recorded the slowest rise in Headline inflation on Year-on-Year basis.
“On a month-on-month basis, however, June 2024 recorded the highest increases in Yobe (3.79 per cent), Abuja (3.45 per cent), Ondo (3.38 per cent), while Nasarawa (0.71 per cent), Osun (1.19 per cent) and Kano (1.27 per cent) recorded the slowest rise on Month-on-Month inflation” it further stated.
On a year-on-year basis, in June 2024, the Urban inflation rate was 36.55 per cent, which was 12.23 per cent points higher compared to the 24.33 per cent recorded in June 2023. On a month-on-month basis, the urban inflation rate was 2.46 per cent in June 2024, this was 0.11 per cent points higher compared to May 2024 (2.35 per cent).
The corresponding 12-month average for the urban inflation rate was 32.08 per cent in June 2024. This was 9.7 per cent points higher compared to the 22.38 per cent reported in June 2023.
While the rural inflation rate in June 2024 was 32.09 per cent on a year-on-year basis; this was 10.71 per cent higher compared to the 21.37 per cent recorded in June 2023.
The statistics agency stated that “On a month-on-month basis, the rural inflation rate in June 2024 was 2.17 per cent, up by 0.23 per cent points compared to May 2024 (1.94 per cent).
“The corresponding twelve-month average for the rural inflation rate in June 2024 was 28.15 per cent. This was 7.39 per cent higher compared to the 20.76 per cent recorded in June 2023.”
Furthermore, Core inflation stood at 27.40 per cent in June 2024 on a year-on-year basis; indicating an upward movement of 7.34 per cent when compared to the 20.06 per cent recorded in June 2023. “On a month-on-month basis, the core inflation rate was 2.06 per cent in June 2024.
It stood at 2.01 per cent in May 2024, an increase of 0.05 per cent. The average twelve-month annual inflation rate was 24.06 per cent for the twelve months ending June 2024; this was 5.59 per cent points higher than the 18.47 per cent recorded in June 2023,” it stated.
*FG distributes 20 trucks of rice each to 36 states, FCT as booster
Meanwhile, the Federal Government yesterday said it has distributed 740 trucks of rice to the 36 states of the federation and the Federal Capital Territory (FCT), Abuja.
Each state including the FCT was given 20 trucks containing 1,200 bags of 25kg for each truck and the rice is to be distributed to the most vulnerable in the society.
Minister of Information and National Orientation, Mohammed Idris disclosed this while briefing State House correspondents at the end of the Federal Executive Council, FEC, meeting presided over by President Bola Tinubu at the Council Chamber, Presidential Villa, Abuja.
The Minister, who was flanked by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said that the President directed the Minister of Agriculture to ensure that food is made available to Nigerians.
He explained that the distribution of trucks of rice was also to ensure that the hardship in the country is ameliorated, adding that it’s expected that the state governors will distribute the trucks of rice to the most vulnerable.
According to him, “Today (Monday), we had the eighth council meeting of the year 2024 and several issues were discussed.
“Now, the council deliberated on the state of affairs in Nigeria, especially the issue of food supply and shortage of food on the table of many Nigerians.
“And after exhaustive deliberation, the Minister of Agriculture had earlier been directed to ensure that food is being made available to Nigerians. The understanding is that about 20 trucks of rice have already been supplied to each of the states of the federation including the Federal Capital Territory. Each of the trucks of course is carrying about 1,200 25kg bags of rice.
“This is part of the measures that the government is taking in addition to so many others to ensure that the hardship being experienced by Nigerians is drastically ameliorated.
“So for recap, each of the state governments has received 20 trucks of rice for onward distribution to the most vulnerable. This is a first step and the federal government will continue to support all the state governors and local governments, all the sub-nationals, so that the hardship experienced by most Nigerians in terms of shortage of food supply is breached.
“It is expected that the state governors will go ahead and distribute this food item to the most vulnerable. So that the hardship like I said been experience will be brought down significantly.”
On the issue of Compressed Natural Gas (CNG), the Minister said that the matter was discussed at the council meeting based on the promise made by the federal government to Nigerians.
He said, “The Federal Executive Council has directed the presidential Committee on CNG to expedite its activities to supply buses, to also make it possible for the conversion kits to be available to most Nigerians.
“Already they have started but the federal executive council asked them to redouble their effort. So that conversion kits that we need for the CNG to populate with are made available. Also, the conversion centres that had earlier been approved will be significantly upgraded so that Nigerians will have more conversion centres, and more conversion kits.
“The compliance level of CNG, the federal government has directed this should go up, to reduce our over-reliance on PMS. And this will in turn also aid our energy transition from fossil fuel to renewable energy.
“Now in all, the federal executive council took note of some of the complaints amongst Nigerians, some of the issues raised in terms of transportation, in terms of food prices or food shortages in many homes around the country and the federal executive council is ramping up all that needs to be done to ensure that food is being put on the table of most Nigerians.
“So what government is doing now is just a necessary first step to ensure that supplies are made available to Nigerians through the state governors. I have told you earlier that 20 trucks of rice already reached the state governors. All the governors have already taken delivery of that.
“And the government will continue to work to ensure that food intervention is made available. This of course is an addition to the effort that the government is making in terms of fertilizer supply which is already also being processed. Most of the governors will also have support.
“Recall that the Central Bank of Nigeria had earlier made available over 2.1 million bags of assorted fertilizer to the Ministry of Agriculture for onward distribution to the states. So that is also in progress.
“And the Federal Government will do everything they can to ensure that we have more food for our people, Investments in the agricultural sector are ramped up and you also know that the Federal Ministry of Livestock Development that was announced by Mr. President, also takes off very soon.
“So these are some of the measures and some of the discussions that we had at the federal executive council meeting today. We hope that the council meeting also continue next week. Thank you very much.”
