UK Inflation Rose to 2.00% in June, Core Inflation Remained High at 5.70% and Nigeria’s Inflation Hits 34.19% in June as Food Prices Surge Amidst Economic Challenges.
The UK’s inflation rate in June was 2.00%, somewhat higher than expected but in line with the Bank of England’s target rate. Core inflation continued at a high rate of 5.70%, reflecting sustained price pressures from rising wage levels and service prices.
For the seventh time in a row, the South African Reserve Bank held interest rates steady, which is a record high for the past fifteen years. In June 2024, headline inflation in Nigeria increased for the eighteenth consecutive month to 34.19% year over year. Core inflation climbed to 27.40%, while food inflation soared to 40.87%.
The leading causes of this ongoing inflation are rising food costs brought on by the planting season for essential commodities like tomatoes and yams and pest infestations that harm agricultural produce. Insecurity is another factor.
Recent government initiatives to boost agricultural output may help alleviate inflation in the medium to long term. The Federal Government (FG) and the Nigeria Labour Congress (NLC) agreed to raise the minimum wage from N30,000 to N70,000, which will now be reviewable every three years. However, more than this wage increase may be needed to offset the effects of inflation and alternative solutions are required to address the high cost of living.
Corporate Records
On the corporate front, the Nigerian Exchange (NGX) delisted Niger Insurance PLC, Resort Savings, RAK Unity Petroleum, and Loans PLC due to issues of non-compliance. The Nigerian National Petroleum Company (NNPC) announced a settlement agreement enabling SEPLAT to acquire EXXONMOBIL’s stake in MOBIL, expected to stimulate increased investment in the oil sector.
The Nigerian Stock Exchange market ended the week on a bullish note, with NGXASI recording a gain of 0.87% WoW.
Comment, Like 👍, share this article, and Follow us on our social media handles.
WhatsApp Channel
Telegram Channel
