KEY POINTS
- Inflation rose to 33.88% in October, up from 32.7%.
- Food and transportation costs remain the main inflation drivers.
- Analysts project further increases amid economic pressures.
Nigeria’s inflation rate surged to 33.88% in October 2024, up from 32.70% in September, according to the Consumer Price Index report released by the National Bureau of Statistics on Friday. The increase marks a 1.18 percentage point rise month-on-month and highlights growing economic challenges in the country.
On a year-on-year basis, the October inflation rate was 6.55 percentage points higher than the 27.33% recorded in the same month last year. The report revealed that the month-on-month headline inflation rate rose by 2.64%, up 0.12% from September’s rate of 2.52%.
“This means that in October 2024, the rate of increase in the average price level was higher than the rate of increase in September 2024,” the summary stated.
Inflation spikes to 33.88%: What the data reveals
Food inflation contributed significantly to the October surge, with a month-on-month rise of 2.94%, compared to 2.64% in September. The report identified sharp price increases in staple items such as palm oil, vegetable oil, dried beef, goat meat, bread, and rice.
On an annual basis, food inflation averaged 38.12% for the 12 months ending October 2024, representing an 11.79 percentage point rise from the previous year’s figure of 26.33%.
Food and fuel costs drive Nigeria’s inflation surge
The persistent rise in inflation is largely tied to increased food and transportation costs. The removal of fuel subsidies earlier in the year, coupled with the continued depreciation of the naira, has fueled higher prices across sectors.
Petrol prices have risen sharply, with Lagos residents paying between N980 and N1,050 per liter, while prices in other states are even higher. Insecurity and flooding in agricultural regions have further compounded the crisis, disrupting food production and supply chains.
Earlier in 2024, inflation peaked at 34.19% in June, the highest in nearly 30 years. Seasonal harvests temporarily eased the pressure, but inflation resumed its upward climb in September.
Analysts warn inflation may exceed 35% by December
Economists project that inflation could rise above 35% by December, driven by sustained pressures on food and energy costs. “The headline index will likely exceed current levels if these trends continue,” said a report from financial analysts.
Year-on-year food inflation climbed to 37.77% in September, rising by 25 basis points from August. Contributing factors include high farm input costs and worsening insecurity in food-producing areas.
With inflation eroding purchasing power and deepening economic strain, the outlook for Nigeria’s economy remains uncertain.
