Nigeria’s inflation rate maintained a consistent climb to 27.33 percent in October, a 0.61 percent increase from 26.72 percent level attained in September, the National Bureau of Statistics (NBS) reported on Wednesday.
The statistics agency said in the latest consumer price index (CPI), which captures the inflationary trend in the country’s economy, that headline inflation rate on a year-on-year basis was 6.24 percent points higher, compared to 21.09 percent rate in the corresponding period in October 2022.
The report said the food inflation rate in October also rose to an average of 31.52 percent on a year-on-year basis, about 7.80 percent points higher compared to 23.72 percent rate recorded in the corresponding period of October 2022.
A review of the recent situation in the economy revealed that food prices, which maintained a consistent rise across the country for months, deteriorated further in the last coupple of months as a result of the impact of the government inconsistent policies, like the removal of fuel subsidy in the pricing template of petroleum products as well as the inability to rein in the slide of the exchange value of the Naira to international currencies, like the dollar.
Since May 29,when the present administration came to office, the rate o0f inflation has continued to climb, with the Central Bank of Nigeria (CBN) tweaking its monetary policies in an attempt stabilise price.
Givingbdetails of the latest CPI, the Statistician General of the Federation and Chief Executive Officer of the National Bureau of Statistics (NBS), Adeyemi Adeniran, said the increase in the headline index for October 2023 was attributable to the increase in some items in the basket of goods and services at the divisional level.
These increases, he said, were observed in Food and non-alcoholic Beverages (14.16%), Housing, Water, Electricity, Gas & other Fuel (4.57%), Clothing & Footwear (2.09%), Transport (1.78%), Furnishings & Household Equipment and maintenance (1.37%), Education (1.08%) and Health (0.82%). Others are Miscellaneous Goods & Services (0.45%), Restaurants & Hotels (0.33%), Alcoholic Beverages, Tobacco & Kola (0.30%), Recreation & Culture (0.19%) and Communication (0.19%)
However, the SGF said that on a month-on-month basis, the headline inflation rate in October 2023 stood at 1.73%, showing that the rate of increase in the average price level was less than that of the preceding month by 0.37% when compared to the rate recorded in September 2023 (2.10%).
The percentage change in the average CPI for the 12 months ending October 2023 over the average of the CPI for the previous corresponding 12-month period was 23.44%, showing a 5.57% increase, compared to 17.86% recorded in October 2022.
“The Food sub-index for October 2023 increased to 31.52% on a year-on-year basis, about 7.80% points higher compared to the rate recorded in October 2022 (23.72%).
“The rise in Food inflation on a year-on-year basis was attributed to increases in prices of Bread & cereals, Oil & fat, Potatoes, Yam & other Tubers, Fish, Fruit, Meat, Vegetables and Milk, Cheese, and Eggs.
However, on a month-on-month basis, the Food inflation rate in October 2023 was 1.91%. This was 0.54% lower compared to the rate recorded in September 2023 (2.45%). The decline in Food inflation was caused by a decrease in the average prices of Fruits, Oil and fat, Coffee, Tea and Cocoa, Bread and Cereals,” the NBS Chief said.
The average annual rate of Food inflation for the 12 months ending October 2023 over the previous 12-month average was 26.33%, which was a 6.50% points increase from the average annual rate of change recorded in October 2022 (19.83%).
On the other hand, he said core inflation, which is ‘All items less volatile farm produces and Petroleum Motor Spirit (PMS). As communicated in the previous month, the exclusion of the premium motor spirit (PMS) is due to the deregulation of the commodity by the removal of subsidy by the Federal Government.
The core inflation rate, he said, stood at 22.58% in October 2023 on a year-on-year basis, showing a rise of 5.12% when compared to the 17.46% recorded in October 2022. The highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Passenger Transport by Air, Actual and Imputed Rentals for Housing, Pharmaceutical products etc.
Conversely, on a month-on-month basis, the NBS said Core Inflation rate was 1.39% in October 2023, showing a slowing down by 0.83% compared to 2.22% recorded in September 2023.
The average 12-month annual inflation rate was 19.98% for the 12 months ending October 2023, which was 4.60% points higher than the 15.38% recorded in October 2022.
The NBS said the Urban consumer’s inflation rate on a year-on-year basis stood at 29.29% for October 2023, showing a 7.66% point higher compared to the 21.63% recorded in the corresponding month in the year 2022.
On a month-on-month basis, the Urban inflation rate grew by 1.81% in October 2023, showing a decrease of 0.43% points compared to 2.24% in September 2023.
The 12-month average annual inflation rate ending October 2023 over the previous corresponding twelve-month average, Urban inflation rate was 24.76%. This was 6.38% points higher compared to the 18.38% reported in October 2022.
On the other hand, Rural consumer’s sub-index in October 2023 was 25.58% on a year-on-year basis, showing a 5.01% higher compared to the 20.57% recorded in October 2022.
On a month-on-month basis, the Rural sub-index in October 2023 was 1.67%, which decreased by 0.29% points compared to September 2023 (1.96%).
The 12-month average annual inflation rate ending October 2023 over the previous corresponding 12-month average, Rural inflation rate was 22.23%. This was 4.85% higher compared to the 17.38% recorded in October 2022.
Besides, the analyses of the states showed that the all-item index for October 2023, on a year-on-year basis was highest in Kogi (34.20%), Rivers (31.44%), Lagos (31.23%), while Borno (20.06%), Jigawa (23.52%) and Sokoto (24.47%) recorded the slowest rise in headline inflation.
On a month-on-month basis, October 2023 recorded the highest increases in Yobe (3.72%), Jigawa (2.85%), Sokoto (2.84%), while Kogi (1.01%), Edo (1.05%) and Kwara (1.18%) recorded the slowest rise on month-on-month inflation.
State-level analyses of the food index in October 2023, on a year-on-year basis, showed the highest increases in Kogi (41.74%), Kwara (38.48%) and Lagos (37.37%), while Borno (24.41%), Kebbi (24.90%) and Jigawa (25.10%) recorded the slowest rise.
On a month-on-month basis, however, October 2023 Food inflation was highest in Yobe (5.35%), Sokoto (3.68%) and Jigawa (3.45%), while Edo (0.95%), Katsina (1.03%) and Rivers (1.10%) recorded the slowest rise.