Nigeria’s inflation rate climbed to 34.60% in November 2024, marking its third consecutive monthly rise, reports the National Bureau of Statistics. This figure increased by 0.72 percentage points from October’s 33.88% inflation rate. Year-on-year, inflation surged by 6.40 percentage points, compared to 28.20% recorded in November 2023. Persistent economic challenges continue to drive the inflationary trend.
Food Prices Continue to Surge
Food inflation, a key contributor to Nigeria’s overall inflation, saw a significant rise, reaching 39.93% in November. This is a marked increase from 32.84% in the same month last year. Prices of essential food items like rice, maize, bread, potatoes, and cooking oil have been rising sharply, further straining the purchasing power of Nigerian households. On a month-on-month basis, food inflation stood at 2.98%, slightly higher than the 2.94% increase recorded in October.
Factors Behind the Inflation Surge
The devaluation of the naira and multiple hikes in fuel prices have been cited as major factors contributing to the persistent inflationary trend in the country. The rising cost of petroleum products has led to an increase in transportation costs, which in turn has affected the prices of goods and services across various sectors. As fuel prices continue to rise, inflation pressures show little sign of easing, worsening the already severe cost-of-living crisis faced by Nigerians.
Central Bank’s Efforts to Tackle Inflation
In response to the rising inflation, the Central Bank of Nigeria (CBN) has implemented a series of interest rate hikes. The CBN raised interest rates six times this year, a total increase of 875 basis points, as part of efforts to curb inflation. These measures, aimed at reducing inflationary pressures, have yet to yield significant results, with inflation continuing its upward trajectory.
Economic Impact of Policy Changes
President Bola Tinubu’s economic policies, including naira devaluation and subsidy cuts, have worsened Nigeria’s inflation surge. Intended to boost growth and stabilize finances, these reforms have caused widespread hardship, especially in late 2024. Rising fuel prices, food costs, and interest rates have pushed many Nigerians into financial struggles. Citizens are now adjusting their lifestyles to cope with soaring living expenses.
The Growing Economic Strain
As inflation continues to rise, Nigerians across the country are grappling with skyrocketing prices and diminishing purchasing power. Reports indicate that transportation, food, and essential services have seen steep price hikes, which have left many people unable to afford basic necessities. With the economic challenges deepening, there is growing concern about the long-term impact of the current inflationary trend on the nation’s economic stability.
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