Inflation Hits Record Levels in September
Nigeria’s inflation rate surged to 32.70% in September 2024, marking an increase from 32.15% recorded in August, according to the National Bureau of Statistics (NBS). This significant rise is attributed to higher transportation and food costs following petrol price hikes earlier in the month. The inflation rate has soared compared to the 26.72% recorded during the same period last year.
Sharp Rise in Food Prices
Food prices continue to drive inflation, with the food inflation rate reaching 37.77% in September, a significant jump from 30.64% recorded in September 2023. The increased costs of essential items such as oils, meats, and beverages contributed to the price surge. Month-on-month, food inflation stood at 2.64%, slightly up from 2.37% in August, reflecting the ongoing pressure on Nigerian households.
Core Inflation Also on the Rise
Core inflation, which excludes volatile items like energy and agricultural products, rose to 27.43% year-on-year, up from 21.84% in September 2023. Although there was a slight easing in core inflation month-on-month, dropping to 2.10% from 2.27% in August, the overall trend indicates persistent inflationary pressures affecting multiple sectors of the economy.
Urban and Rural Inflation
Both urban and rural areas felt the pinch of rising inflation. Urban inflation increased to 2.67% in September, up from 2.39% in August, while rural inflation rose to 2.39%, compared to 2.06% the previous month. These figures highlight the broad impact of inflation across Nigeria, exacerbating the cost of living crisis in both urban and rural communities.
Petrol Price Hikes Drive Inflation Surge
The inflation surge is largely driven by recent increases in petrol prices, which have had a ripple effect on transportation and food costs. With petrol prices pushing up the cost of goods and services, Nigerians are experiencing the strain of an economy under inflationary pressure. The persistent rise in inflation is a significant challenge for both consumers and businesses.
Economic Outlook Amid Inflation
As inflation continues to rise, the Nigerian government faces growing pressure to address the underlying causes, particularly the fuel price hikes and disruptions to supply chains. Economists warn that without significant intervention, inflation could continue to climb, further straining the economy and the daily lives of Nigerians. Efforts to stabilise fuel prices and reduce inflationary pressures are essential to improving the economic outlook.
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