June 19, 2024/InvestmentOne Report
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- The latest Consumer Price Index (CPI) report from the National Bureau of Statistics (NBS) indicates that inflation in Nigeria continued its upward trajectory in May 2024 for the 17th consecutive month. Headline inflation rose by 26bps to 33.95% YoY, marking a persistent increase albeit at a slower pace.
- However, food inflation continued to surge in the month of May, rising by 13bps to an all time high of 40.66% YoY. The major increases were driven by the rise in the prices of Semovita, Oatflake, Yam flour prepackage, Garri, Bean, etc (which are under Bread and Cereals Class), Irish Potatoes, Yam, Water Yam, etc (under Potatoes, Yam and other Tubers Class), Palm Oil, Vegetable Oil, etc (under Oil and fat), Stockfish, Mudfish, Crayfish, etc (under Fish class), Beef Head, Chicken-live, Pork Head, Bush Meat, etc (under Meat class).
- Elsewhere, core inflation which excludes volatile food and energy prices rose to 27.04% YoY in May 2024, 20bps higher than what was recorded in April 2024.
- Looking ahead, we expect the inflation rate to continue its upward trend in the short to medium term due to the ongoing economic challenges, especially those related to food inflation.
