Analysis – May 2024 Inflation on the Rise and Economic Impact

Assumpta Udochukwu
By Assumpta Udochukwu 4 Min Read

In May 2024, the headline inflation rate rose to 33.95%, a slight increase from April’s 33.69%. Though the 0.26 percentage point rise might seem small, it highlights a persistent inflation trend that affects the economy significantly.

Year-over-year, the situation looks even more serious. The inflation rate in May 2024 was 11.54 percentage points higher than in May 2023, when it was 22.41%. This substantial jump underscores ongoing economic challenges, as rising inflation continues to reduce purchasing power and put pressure on household budgets.

Interestingly, while annual inflation increased, the month-on-month data showed a slight improvement. In May 2024, the month-on-month inflation rate was 2.14%, down from April’s 2.29%. This suggests that although prices are still rising, they are doing so at a slower rate compared to the previous month.

Understanding the Data

  • Monthly Increase: The 0.26 percentage point rise from April to May 2024 indicates ongoing inflationary pressures. Both businesses and consumers are feeling the effects of rising costs, which can lead to a cycle of price increases as companies pass on higher expenses to consumers.
  • Annual Surge: The 11.54 percentage point increase from May 2023 to May 2024 is particularly concerning. This sharp rise suggests that inflation is a sustained trend rather than a temporary issue. High inflation can lead to reduced consumer spending, higher interest rates, and potentially slower economic growth.
  • Monthly Deceleration: The decrease in the month-on-month inflation rate from 2.29% in April to 2.14% in May 2024 offers a glimmer of hope. It indicates that while prices are still climbing, the rate of increase is slowing. This could signal that some inflationary pressures are starting to ease, possibly because of monetary policy interventions or other economic factors.

Implications for the Future

The mixed signals from the inflation data present a complex scenario for policymakers and economists. The high year-on-year inflation suggests that measures to control inflation are still urgently needed. These could include raising interest rates to curb spending and borrowing or implementing fiscal policies aimed at reducing deficits and stabilizing the economy.

On the other hand, the slowing pace of month-on-month inflation could indicate that some of these measures are beginning to take effect. It’s essential to monitor this trend to see if it continues in the coming months, potentially signaling a turning point in the battle against inflation.

Impact on Consumers and Businesses

For consumers, the high inflation rate means continued increases in the cost of living. Essentials such as food, housing, and transportation are likely to become more expensive, squeezing household budgets and reducing disposable income. For businesses, rising costs can lead to higher prices for goods and services, impacting sales and profitability.


The inflation data for May 2024 presents a distinctive picture of the current economic landscape. While the headline inflation rate continues to rise, the slowing month-on-month rate offers a tentative sign of relief.

Policymakers will need to carefully navigate this complex environment to ensure that inflation is brought under control without stifling economic growth. For consumers and businesses, staying informed and adapting to these changes will be key to weathering the ongoing inflationary storm.

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Assumpta Udochukwu
Posted by Assumpta Udochukwu
Assumpta is a Professional Accountant, Brand Strategist, Writer and Digital Data Storyteller with extensive experience in Finance, Digital Marketing and Business Administration. She is the Chief Analyst and Editor at, she is passionate about telling data stories in an entertaining and engaging manner.
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