Nigeria’s headline inflation rate surged to 33.88% in October 2024, up from 32.7% in September, representing a 1.18 percentage point increase month-on-month. This was revealed in the Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) on Friday.
The NBS attributed the inflationary pressures to escalating transportation costs and higher food prices, which continue to strain household budgets nationwide.
Year-on-Year Inflation Soars
On a year-on-year basis, the inflation rate in October 2024 was 6.55 percentage points higher than the 27.33% recorded in October 2023. The report highlights a persistent upward trend in consumer prices over the past year.
Month-on-month, the inflation rate for October stood at 2.64%, slightly above the 2.52% recorded in September. This indicates a faster pace of price increases in October compared to the preceding month.
Food Inflation at 39.16%
Food inflation remained a significant driver of overall inflation, reaching 39.16% in October 2024 on a year-on-year basis—7.64 percentage points higher than October 2023’s rate of 31.52%.
The increase in food inflation was attributed to rising prices of essential items, including guinea corn, rice, maize, yam, water yam, and cocoyam. Palm oil, vegetable oil, and other items in the oil and fats category, as well as beverages like Milo, Lipton, and Bournvita, also saw sharp price hikes.
On a month-on-month basis, food inflation rose by 2.94%, compared to 2.64% in September, reflecting continued upward pressure on food prices.
Key Contributors to Price Hikes
The NBS detailed the main drivers of the food inflation surge, which included:
Staple Foods: Bread, rice, plantain flour, and guinea corn flour.
Meat Products: Dried beef, goat meat, and mutton.
Seafood: Mudfish, croaker, and fresh fish.
12-Month Food Inflation Average
For the 12-month period ending October 2024, the average annual food inflation rate was 38.12%, a sharp increase of 11.79 percentage points from the 26.33% recorded in October 2023.
Economic Implications
The sustained rise in inflation underscores the challenges facing policymakers as they grapple with mitigating the impact on consumers. The combination of rising costs for essentials and transportation continues to place significant strain on Nigerians’ purchasing power, with food prices remaining the most significant contributor.
