Nigeria is grappling with a sharp increase in food prices, as new data reveals that food inflation surged to 40.66% in May 2024, marking a significant rise from previous levels.
According to the National Bureau of Statistics (NBS), this increase reflects a steady climb in the cost of living across the country.
The latest Consumer Price Index and Inflation report from the NBS highlighted that food inflation jumped by 61% from 25.25% in June 2023 to 40.66% in May 2024. This rise underscores the challenges faced by Nigerians in accessing affordable food amidst broader economic pressures.
An NBS spokesperson emphasized the impact of these figures, stating, “The sharp increase in food inflation is concerning as it directly affects the cost of living for many Nigerians.”
Overall inflation also saw a slight rise, moving to 33.95% in May 2024 from 33.69% in April 2024. The report attributed this uptick to higher food and transport costs, exacerbating the economic strain on households.
The report detailed that key contributors to the inflation rate included food and non-alcoholic beverages, housing, water, electricity, gas, and other fuels, as well as clothing and footwear.
Furthermore, the data highlighted that on a year-on-year basis, Bauchi, Kogi, and Oyo states recorded the highest all-items inflation rates, underscoring the widespread nature of the economic challenges faced across different regions of the country.
Economists have expressed deep concerns over the implications of these inflationary trends. Shadrach Israel from Lotus Beta Analytics remarked, “The rapid increase in inflation rates indicates underlying structural issues within the economy that need urgent attention.”
Israel urged the government to implement comprehensive measures to address these challenges, including monetary policy adjustments, supply-side reforms, and social protection initiatives to mitigate the impact on vulnerable citizens.
Jonathan Thomas, a development economist, highlighted the broader implications of inflation on citizens’ welfare, particularly during festive periods like Sallah. He emphasized the need for concerted efforts to tackle insecurity, promote economic diversification, and enhance agricultural productivity to stabilize food prices and improve overall economic stability.
In response to the escalating food inflation, stakeholders are calling for decisive action from the government to restore purchasing power and foster sustainable economic growth across Nigeria.