Soaring prices of food commodities again pushed Nigeria’s annual inflation rate to 27.33 per cent in October from 26.72 per cent in September, according to the latest report by the National Bureau of Statistics (NBS).
Released today, the NBS Consumer Price Index (CPI) report said the October 2023 headline inflation rate was 0.61 per cent points higher than the September rate.
The report said: “In October 2023, the headline inflation rate increased to 27.33% relative to the September 2023 headline inflation rate which was 26.72%.
“Looking at the movement, the October 2023 headline inflation rate showed an increase of 0.61% points when compared to the September 2023 headline inflation rate.
“Furthermore, on a year-on-year basis, the headline inflation rate was 6.24% points higher compared to the rate recorded in October 2022, which was (21.09%).
“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).”
Food inflation
Specifically on food inflation, the report said: “The Food inflation rate in October 2023 was 31.52% on a year-on-year basis, which was 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 caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other Tubers, Fish, Fruit, Meat, Vegetables and Milk, Cheese and Eggs.”
However, the report showed that on a month-on-month basis, the Food inflation rate decelerated in October to 1.91% or 0.54% lower compared to the rate recorded in September (2.45%).
“The decline in Food inflation on a month-over-month basis was caused by the decline in the rate of increase in the average prices of Fruits, Oil and fat, Coffee, Tea and Cocoa, Bread and Cereals,” the report said.
But “The average annual rate of Food inflation for the twelve months ending October 2023 over the previous twelve-month average was 26.33%, which was 6.50% points increase from the average annual rate of change recorded in October 2022 (19.83%),” it added.
The Food inflation rate in October 2023 was 31.52% on a year-on-year basis, which was 7.80% points higher compared to the rate recorded in October 2022 (23.72%).
The NBS report listed the contributory items to the high headline inflation rate to include:
- Food & non-alcoholic beverages (14.16 per cent);
- Housing water, electricity, gas & other fuel (4.57 per cent); Clothing & footwear (2.09 per cent);
- Transport (1.78 per cent);
- Furnishings & household equipment & maintenance (1.37 per cent);
- Education (1.08 per cent);
- Health (0.82 per cent);
- Miscellaneous goods & services (0.45 per cent);
- Restaurant & hotels (0.33 per cent);
- Alcoholic beverage, tobacco & kola (0.30 per cent);
- Recreation & culture (0.19 per cent); and,
- Communication (0.19 per cent).
Additionally, on a year-on-year basis, the “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 22.58% in October 2023 or 5.12% above the 17.46% recorded in October 2022.
“The highest increases were recorded in the prices of Passenger Transport by Road, Medical Services, Passenger Transport by Air, Actual and Imputed Rentals for Housing, Pharmaceutical products etc.
“On a month-on-month basis, the Core Inflation rate was 1.39% in October 2023 compared to September 2023 which stood at 2.22%, this shows a decline of 0.83%.
“The average twelve-month annual inflation rate ending October 2023 was 19.98%; this was 4.60% points higher than the rate recorded for the twelve-month average ending October 2022 (15.38%),” NBS said.
Reviewed further, on a year-on-year basis, in October, the Urban inflation rate was 29.29%, or 7.66% points higher compared to the 21.63% recorded a year ago.
On a month-on-month basis, the Urban inflation rate was 1.81% in October 2023, this was 0.43% points lower compared to September 2023 (2.24%).
“The corresponding twelve-month average for the Urban inflation rate was 24.76% in October 2023. This was 6.38% points higher compared to the 18.38% reported in October 2022,” the report said.
Similarly, the Rural inflation rate during the period was 25.58% on a year-on-year basis; this was 5.01% higher compared to the 20.57% recorded in October 2022.
“On a month-on-month basis, the Rural inflation rate in October 2023 was 1.67%, declined by 0.29% points compared to September 2023 (1.96%).
“The corresponding twelve-month average for the Rural inflation rate in October 2023 was 22.23%. This was 4.85% higher compared to the 17.38% recorded in October 2022.
