The latest report from NewsNow reveals that Nigerians are facing increased challenges in affording food, with food inflation rising to 40.66% in May.
The cost of food has spiked by 61% from 25.25% in June 2023 to 40.66% in May 2024, indicating a consistent uptrend in the cost of living.
This data is based on an analysis of the recent Consumer Price Index and Inflation report released by the National Bureau of Statistics.
The Consumer Price Index tracks the average fluctuations over time in the prices of goods and services essential for daily living.
The NBS revealed that headline inflation increased by 0.26%, reaching 33.95% from 33.69% in April.
The report highlighted a record inflation rate, hitting a 28-year high since March 1996, mainly driven by surges in food and transport costs.
The main contributors to headline inflation in May 2024 were food & non-alcoholic beverages (17.59%), housing, water, electricity, gas & other fuels (5.68%), and clothing & footwear (2.60%).
Analysis of the data showed a gradual increase in food commodity prices from June 2023 (25.25%) to May 2024 (40.66%).
Factors such as removal of fuel subsidies have exacerbated the surge in food prices, weakening the purchasing power of many households.
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, pointed out that government purchases of foodstuff as palliatives have contributed to the soaring food inflation.
Economist Shadrach Israel expressed concerns about the structural issues underlying the economy leading to an alarming increase in inflation rates, emphasizing the need for immediate action from the government.
Development economist Jonathan Thomas highlighted the impact of inflation on citizens’ welfare and urged for solutions to address economic instability and promote sustainable growth.