Inflation Soars to 33.88% in October
The National Bureau of Statistics (NBS) has reported that Nigeria’s inflation rate rose to 33.88% in October 2024, up from 32.70% in September. The latest figures, contained in the Consumer Price Index report released on Friday, reflect a 1.18% increase month-on-month. The rise further underscores the financial pressure on Nigerians as prices for basic goods and services continue to surge.
Year-on-Year Inflation Sees Significant Spike
Compared to October 2023, the headline inflation rate increased by 6.55 percentage points from 27.33%, marking a year-on-year rise. Month-on-month, the inflation rate for October was recorded at 2.64%, slightly higher than September’s 2.52%. The report highlights that the average price level of goods and services has climbed steadily, further squeezing household budgets.
Food Inflation Drives Rising Costs
Food inflation remained a significant contributor, rising to 2.94% in October from 2.64% in September. Key drivers include increases in the prices of palm oil, vegetable oil, fresh and dried fish, goat meat, and staples like bread, rice, and plantain flour. The report noted that the average annual food inflation rate over the past 12 months reached 38.12%, an 11.79% increase compared to the same period last year.
Economic Factors Behind the Surge
Analysts attribute the persistent rise in inflation to several factors, including the removal of fuel subsidies, the depreciation of the naira, and ongoing insecurity and flooding in food-producing regions. Petrol prices, which rose from ₦980 to around ₦1,050 per litre in Lagos, have further driven up transportation and production costs.
Historical Trends Highlight Volatility
Earlier in the year, inflation peaked at 34.19% in June, the highest rate in nearly three decades. While seasonal harvests provided temporary relief in subsequent months, the inflation rate began to climb again in September. The consistent increase in food prices, coupled with high farm input costs, has added to the strain on households and businesses alike.
Outlook for the Coming Months
Projections suggest that the headline inflation rate could surpass 35% by December if current trends persist. With food and energy costs showing no signs of easing, Nigerians face continued financial challenges as the year draws to a close. The NBS figures reinforce the urgent need for policy interventions to stabilise the economy and mitigate the impact on vulnerable populations.
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