Inflation Rate Rise to 33.69% in April 2024 - NBS

The National Bureau of Statistics (NBS) released updated data on Wednesday, revealing that the country's inflation rate reached a new high of 33.69% in April 2024.

The most recent inflation rate released by the NBS shows a slight increase from the March report, which settled at 33.2% and is much higher than the corresponding period last year, which was 22.22%.

According to data from the National Bureau of Statistics, April 2024 saw a 2.29% increase month over month, marginally less than March 2024's 3.02% increase.

According to analysts, the overall trend remained concerning, even though the month-to-month increase slowed slightly.

Food inflation hit 40.53% year-on-year, significantly exceeding April 2023's rate of 24.61 percent.

Despite the increase, the monthly food inflation rate declined from 3.62% in March to 2.50% in April 2024.

According to the NBS, increases in prices of Millet flour, Garri, Bread, Wheat Flour prepacked, Semovita (which are under Bread and Cereals Class), Yam Tuber, Water Yam, cocoyam (under Potatoes, Yam and other Tubers Class), Coconut Oil, Palm Kernel Oil, Vegetable Oil, etc. (under Oil and fat), Dried Fish Sardine, Catfish Dried, Mudfish Dried (under Fish class), Beef Head, Beef Feet, Liver, Frozen Chicken (under Meat class), Mango, Banana, Grapefruit (under Fruit Class), Lipton Tea, Bournvita, Milo (under Coffee, Tea, and Cocoa Class) triggered the rise in food prices as reported.

Similarly, year-over-year growth in core inflation (all items minus farm produce and energy) reached 26.84%, up from a Y/Y figure of 25.9% in March. This increase was due to 94 basis points. Price increases for Actual and Imputed Rentals for Housing, Motorbike and Bus Journeys Within Cities (Under Passenger Transport by Road Class), Medical Services Class (Medical Consultation Fees, X-ray photography, etc.) and Accommodation Services were the highest.

In other news, the core index decreased from 2.54% to 2.2% month over month in April 2024, a 34bps decrease month over month.

Analysts say that this increase illustrates Nigeria's difficult economic circumstances, with growing inflation straining household budgets.

Back Story

On Tuesday, the value of the naira fell at the Nigeria Foreign Exchange Market (NAFEM) and the parallel market, closing at N1,520.40 to the dollar at the official end of the market after depreciating to N1,478.11 to the dollar on Monday. 

Even with the Economic and Financial Crimes Commission (EFCC) continuing to arrest money changers throughout Lagos, the naira's value also declined to N1,501 to the US dollar at the close of trading on Tuesday, down from N1,485 to the dollar on Monday.

At the official end of trading, the naira depreciated by N42.29, or 2.9%, to close at N1,520.40 against the dollar. On Monday, it depreciated by 0.8% to close at N1,478.11 against the dollar, recording a N11.8 loss from its Friday closing of N1,466.31.

At the close of trading, the NAFEM's turnover fell to $128.76 million from $217.64 million on Tuesday. In contrast to Monday's highest spot rate of N1,515, followed by the lowest spot rate of N1,301, intraday trading activities saw deals completed at the highest spot rate of N1,568, and the lowest being N1,350.