July 15, 2024/InvestmentOne Report
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- According to the latest Consumer Price Index (CPI) report from the National Bureau of Statistics (NBS), Nigeria s inflation continued its uptrend in June 2024. Relative to the previous month, the headline inflation increased by 24bps to 34.19% YoY, albeit rising at its slowest pace thus far this year.
- Legacy issues in the agricultural sector, such as inadequate infrastructure, bad road networks, poor storage facilities and insecurity in food producing region, continue to pose challenges to food supply. Consequently, leading to higher food prices, with the annual food inflation rate printing at an all-time high of 40.87% in June 2024, 15.62% higher than the rate recorded in the previous year (25.25% : June 2023).
- Elsewhere, core inflation which excludes volatile food and energy prices rose to 27.40% YoY in June 2024, 36bps higher than what was recorded in May 2024. Likewise, on a monthly basis, the core index inched higher by 5bps 2.06%.
- Going forward, we expect inflation rate to continue its northward trend, albeit at a slower pace especially as we approach harvest season in the coming months. In addition, we anticipate the waning out of Eid demand to alleviate month-on-month price pressure in July 2024.
