Nigeria’s inflation quickens to 27.33 % for October 2023

Headline inflation in Nigeria grew by 27.33 per cent in October compared to a year ago, mainly due to the continued depreciation of the naira and higher food and fuel prices, according to the National Bureau of Statistics.

The Consumer Price Index report released by NBS today, which measures changes in many goods and services, showed that Inflation rose to a new 18-year high of 27.33 per cent from 26.72 per cent in the previous month.

Except for a brief pause in December 2022, Nigeria’s inflation reading has steadily increased since February 2022; this year, it is currently on a ten-month consecutive high.

Inflation was about equal to expert projections. On a month-over-month basis, the inflation rate rose by 1.73 per cent, 0.37 per cent lower than the rate recorded in September 2023 (2.10 per cent). This means that in October 2023, the rate of increase in the average price level is less than in the intermediate price level in September 2023.

Economists had expected the data to show a 27.8 per cent overall increase in Inflation compared to a year ago.

A breakdown of the NBS’ latest consumer price index report shows that food and non-alcoholic beverages contributed the most (14.16 per cent) to the increase in the headline index, followed by housing, water, electricity, gas and other fuel (4.57 per cent), clothing and footwear (2.09 per cent), transport (1.78 per cent), furnishings and household equipment and maintenance (1.37percent) and education (1.08 per cent).

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Others are health (0.82 per cent), miscellaneous goods and services (0.45percent), restaurants and hotels (0.33 per cent), alcoholic beverages, tobacco and kola (0.30 per cent), recreation and culture (0.19) and communication (0.19 per cent).

The NBS report also revealed that food inflation, which constitutes 50 per cent of the inflation rate, rose to 31.52 per cent in October, the highest in 18 years, from 30.64 per cent in September.

Increases in prices of oil and fat, bread and cereals, potatoes, yam and other tubers, fish, fruit, meat, vegetables, mil,k, cheese, and eggs caused the rise in food inflation year-on-year.

On a month-on-month basis, the food inflation rate in October 2023 was 1.91 per cent, 0.54 per cent lower than the 2.45 per cent recorded in September 2023.

The decline in the rate of increase in the average prices of Fruits, Oil and fat, Coffee, Tea and Cocoa, Bread and Cereals caused the decrease in Food inflation month-over-month.

Core inflation, which excludes the prices of volatile agricultural produce, stood at 22.58 per cent in October on a year-on-year basis, up by 5.12 per cent compared to the 17.46 per cent recorded in October 2022.