+Major Welfare Problems: 5 Items
As inflation rises, the pocket feels the pinch.
This reflects the struggles of the average Nigerian, who faces a rising cost of goods and services and an increasingly high cost of living.
However, the month-on-month inflation rate for June 2024 shows a glimmer of hope. While all prices are still on the increase, the rate of increase has slowed down for some goods and services.
In June, the month-on-month inflation rate slowed down for 5 out of the 12 main items. These include healthcare and other miscellaneous goods.
Conversely, prices increased faster in June than May for the remaining 7 items: food and non-alcoholic beverages, housing, water and electricity, transportation, education, recreation, and restaurant and hotel services.
A sustained slowdown in the inflation rate in major services like healthcare will improve access to medical services. However, the rise in food inflation and education is detrimental to survival, welfare, and social development.
In the Consumer Price Index for June 2024, the month-on inflation rate for alcoholic beverages slowed down the most with a percentage points difference of 0.19%. This was followed by clothing and footwear, communication, and miscellaneous goods.
This does not imply that the prices of these items have decreased; it simply means that the rate at which their prices increased in June was slower compared to May.
If this trend continues, it could lead to more stable prices in these categories, making them more affordable for consumers.
Inflation Rate Rose Faster: 7 of 12 Items
The inflation rate for the remaining seven main items increased faster. Among these items are food, education, and other essential goods and services that are crucial for the survival of Nigerians.
In June, the inflation rate for restaurant and hotel services rose by 0.35 percentage points. Recreation services saw an increase of 0.28 percentage points, while food and non-alcoholic beverages went up by 0.26 percentage points.