Nigeria’s headline inflation rate surged to 33.88% in October 2024, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS).
This marks a notable increase from the 32.7% recorded in September, reflecting a month-on-month rise of 1.18 percentage points. The report attributes the upward trend to higher transportation costs and escalating food prices, signaling growing economic strain for Nigerian households.
On a year-on-year basis, the inflation rate was 6.55 percentage points higher than the 27.33% observed in October 2023.
The NBS noted that the month-on-month headline inflation rate in October stood at 2.64%, up from 2.52% in September, indicating that the pace of price increases accelerated further last month.
Food inflation, a critical metric that tracks price changes in essential commodities, rose to 39.16% year-on-year in October, a significant jump of 7.64 percentage points from 31.52% in the same period last year.
On a month-to-month basis, food inflation also increased, reaching 2.94%, up from 2.64% in September. The spike was driven by price hikes in key items such as local and imported beers, vegetable oil, groundnut oil, palm oil, beef, gizzard, and popular beverages including Lipton tea, Milo, and Bournvita.
The average annual food inflation rate for the twelve months ending October 2024 was 38.12%, which represented an 11.79 percentage point increase compared to 26.33% recorded in October 2023.
READ ALSO: Multichoice Nigeria loses 243,000 subscribers amid rising inflation, regulatory battles
Economic expert Dr. Oluwaseun Adebanjo, an analyst at the Lagos-based Centre for Economic Research, remarked, “The continued rise in food prices points to deeper structural issues within Nigeria’s supply chain and import dependencies. Until these bottlenecks are addressed, we will continue to see steep food inflation, which disproportionately impacts the most vulnerable segments of the population.”
Core inflation, which excludes volatile items such as agricultural produce and energy, rose to 28.37% year-on-year in October, an increase of 5.79 percentage points from 22.58% in October 2023. The month-on-month core inflation rate edged up to 2.14%, compared to 2.10% in September.
Economic commentator and senior financial consultant, Dr. Ifeoma Nwoke, highlighted the compounded impact of these rising service prices.
“When we see sustained increases in core inflation, it signals broader economic pressure that extends beyond volatile food and energy prices. This reflects a more entrenched inflationary environment that may require more aggressive monetary policy measures,” Dr. Nwoke explained.
Urban inflation soared to 36.38% year-on-year in October 2024, an increase of 7.09 percentage points from 29.29% in October 2023. On a month-on-month basis, urban inflation edged up to 2.75%, compared to 2.67% in September. The twelve-month average urban inflation rate was 34.52%, up by 9.76 percentage points from 24.76% in October 2023.
The rural inflation rate also climbed to 31.59% year-on-year, up by 6.01 percentage points from 25.58% recorded in October 2023. On a month-to-month basis, rural inflation reached 2.53%, a slight rise from 2.39% in September.
The average twelve-month rural inflation rate was 30.24%, marking an 8.01 percentage point increase from 22.23% in October 2023.
READ ALSO: Naira continues downward trend against Dollar amid rising inflation, economic challenges
Analysts warn that if current trends persist, the inflationary pressure could deepen, further affecting household purchasing power and economic stability.
Professor Abiola Ajayi, an economist at the University of Ibadan, stated, “The combination of escalating food and core inflation suggests that the average Nigerian household is facing severe economic challenges. The government must take swift actions to stabilize prices through targeted fiscal policies and supply chain interventions.”
The report from the NBS serves as a stark reminder of Nigeria’s ongoing struggle with inflationary pressures, driven by both external and domestic factors. Addressing these challenges will be essential for sustainable economic growth and maintaining the welfare of the nation’s populace.