Nigeria’s Inflation Soars to 33.88% Amid Rising Food and Transport Costs
Key Details from the NBS CPI Report:
1. Headline Inflation Rate
• October 2024: 33.88%
• September 2024: 32.7%
• Month-on-month increase: 1.18 percentage points
• Year-on-year increase: 6.55 percentage points from 27.33% in October 2023.
2. Food Inflation Rate
• Year-on-year (October 2024): 39.16% (up 7.64 points from 31.52% in October 2023).
• Month-on-month: 2.94% (up 0.30 points from 2.64% in September 2024).
• Drivers: Price hikes in:
• Oils and fats: Vegetable oil, groundnut oil, palm oil.
• Meat products: Beef, gizzard, dried beef.
• Beverages: Lipton, Milo, Bournvita.
3. Core Inflation Rate (Excludes Volatile Items)
• Year-on-year: 28.37% (up 5.79 points from 22.58% in October 2023).
• Month-on-month: 2.14% (slightly up from 2.10% in September 2024).
• Major contributors:
• Transportation: Bus, motorcycle, and intercity travel costs.
• Housing: Rent (actual and imputed).
• Services: Restaurant meals, haircuts, hairstyling, personal grooming.
4. Annual Inflation Averages
• Food Inflation (12-month average ending October 2024): 38.12% (up 11.79 points from 26.33% in October 2023).
• Overall Inflation (12-month average): 26.12% (up 6.14 points from 19.98% in October 2023).
Insights & Implications:
• Key Concerns: Rising transportation and food costs are driving inflation, squeezing household budgets.
• Economic Impact: Higher costs in basic commodities like food and housing signal challenges for consumers and businesses alike.
Key Details from the NBS CPI Report:
1. Headline Inflation Rate
• October 2024: 33.88%
• September 2024: 32.7%
• Month-on-month increase: 1.18 percentage points
• Year-on-year increase: 6.55 percentage points from 27.33% in October 2023.
2. Food Inflation Rate
• Year-on-year (October 2024): 39.16% (up 7.64 points from 31.52% in October 2023).
• Month-on-month: 2.94% (up 0.30 points from 2.64% in September 2024).
• Drivers: Price hikes in:
• Oils and fats: Vegetable oil, groundnut oil, palm oil.
• Meat products: Beef, gizzard, dried beef.
• Beverages: Lipton, Milo, Bournvita.
3. Core Inflation Rate (Excludes Volatile Items)
• Year-on-year: 28.37% (up 5.79 points from 22.58% in October 2023).
• Month-on-month: 2.14% (slightly up from 2.10% in September 2024).
• Major contributors:
• Transportation: Bus, motorcycle, and intercity travel costs.
• Housing: Rent (actual and imputed).
• Services: Restaurant meals, haircuts, hairstyling, personal grooming.
4. Annual Inflation Averages
• Food Inflation (12-month average ending October 2024): 38.12% (up 11.79 points from 26.33% in October 2023).
• Overall Inflation (12-month average): 26.12% (up 6.14 points from 19.98% in October 2023).
Insights & Implications:
• Key Concerns: Rising transportation and food costs are driving inflation, squeezing household budgets.
• Economic Impact: Higher costs in basic commodities like food and housing signal challenges for consumers and businesses alike.