Imported food inflation spikes to 36.4 per cent

The country’s imported food inflation jumped to 36.38 per cent in June 2024, from 34.83 per cent in the previous month, representing a 1.55 percentage point increase.

Earlier, the National Bureau of Statistics (NBS) said the headline inflation rose from 33.95 per cent in May 2024 to 34.19 per cent in June.

According to the Consumer Price Index (CPI) data for June 2024, the average price index for imported food rose to 806 points in June 2024 from 591 points in the same month of the previous year.

It increased significantly, from the 19.1 per cent recorded in June 2023, as the naira continues its free fall since last year’s foreign exchange (FX) market rates unification by the Central Bank of Nigeria (CBN).

The NBS data showed that imported food inflation has grown consistently since the beginning of the year.

The headline inflation rate in June 2024 was 11.4 per cent higher compared to June 2023, rising from 22.79 per cent. On a month-on-month basis, the headline inflation rate in June 2024 was 2.31 per cent, an increase of 0.17 per cent points from May 2024’s 2.14 per cent.

This shows that the average price level increased faster in June 2024 than in May 2024.

With headline inflation at 34.19 per cent in June 2024, imported food inflation, which is at 36.38 per cent in the same period, is at a faster rate.

The month-on-month rise in imported food inflation is driven by the weakening naira and a rise in the import duty FX rate.