BREAKING: At 27.33%, Nigeria’s inflation rate hits highest peak since 2005

Nigeria’s inflation rate hits 27.33 per cent in October 2023, making it the highest record since August 2005 when it was at 28.2 per cent.

This is disclosed by the National Bureau of Statistics (NBS) in its Consumer Price Index (CPI) on Wednesday.

According to NBS, “In October 2023, the headline inflation rate increased to 27.33per cent relative to the September 2023 headline inflation rate which was 26.72 per cent.

“Looking at the movement, the October 2023 headline inflation rate showed an increase of 0.61 per cent points when compared to the September 2023 headline inflation rate.

“Furthermore, on a year-on-year basis, the headline inflation rate was 6.24 per cent points higher compared to the rate recorded in October 2022, which was (21.09 per cent). This shows that the headline inflation rate (year-on-year basis) increased in October 2023 when compared to the same month in the preceding year (i.e., October 2022).

The contributions of items on the Divisional level to the increase in the Headline index include: Food & Non-Alcoholic Beverages, Housing, Water, Electricity, Gas & Other Fuel, among others.

The report stated that the percentage change in the average CPI for the 12 months ending October 2023 over the average of the CPI for the previous 12 months period was 23.44per cent, showing a 5.57 per cent increase compared to 17.86 per cent recorded in October 2022.

The food inflation rate, according to NBS in October 2023 was 31.52per cent on a year-on-year basis, which was 7.80percentage points higher compared to the rate recorded in October 2022 (23.72per cent).

“The rise in Food inflation on a year-on-year basis was caused by increases in prices of Bread and ce-reals, Oil and fat, Potatoes, Yam and other Tubers, Fish, Fruit, Meat, Vegetables and Milk, Cheese and Eggs.

“On a month-on-month basis, the Food inflation rate in October 2023 was 1.91per cent this was 0.54per cent lower compared to the rate recorded in September 2023 (2.45per cent).

“The decline in Food inflation on a month-over-month basis was caused by the decline in the rate of in-crease in the average prices of Fruits, Oil and fat, Coffee, Tea and Cocoa, Bread and Cereals,” the report disclosed. 

“The average annual rate of Food inflation for the twelve months ending October 2023 over the previous twelve-month average was 26.33 per cent, which was a 6.50percentage points increase from the average annual rate of change recorded in October 2022 (19.83per cent).”

On urban inflation, the report by NBS said, “On a year-on-year basis, in October 2023, the Urban inflation rate was 29.29per cent, this was 7.66 percentage  points higher compared to the 21.63 per cent recorded in October 2022.

“On a month-on-month basis, the Urban inflation rate was 1.81 per cent in October 2023, this was 0.43 percentage points lower compared to September 2023 (2.24 per cent). The corresponding twelve-month average for the Urban inflation rate was 24.76 per cent in October 2023. This was 6.38 per cent points higher compared to the 18.38 per cent reported in October 2022.”

The rural inflation rate in October 2023 was 25.58per cent on a year-on-year basis; this was 5.01per cent higher compared to the 20.57per cent recorded in October 2022.

“On a month-on-month basis, the Rural inflation rate in October 2023 was 1.67 per cent, declined by 0.29 per cent points compared to September 2023 (1.96per cent). The corresponding twelve-month average for the Rural inflation rate in October 2023 was 22.23 per cent.

“This was 4.85per cent higher compared to the 17.38per cent recorded in October 2022,” NBS disclosed on rural inflation report.