In a concerning economic development, Nigeria’s headline inflation rate surged to 28.2% in November, marking a 0.87% increase over the previous month, according to data released by the National Bureau of Statistics (NBS). This substantial uptick reflects the challenges facing the nation’s economy, with various factors contributing to the alarming inflationary trend.
The Consumer Price Index (CPI) and Inflation Report for November, unveiled in Abuja on Friday, revealed that the inflation rate for November 2023 was 6.73% higher than the corresponding period in 2022 when it stood at 21.47%. This significant year-on-year rise highlights the persistent pressure on the economy.
The NBS attributed the escalation in the headline inflation index to increases in various categories of goods and services, notably food and non-alcoholic beverages, housing, water, electricity, gas, clothing and footwear, and transport. Across the spectrum, rising costs were observed in furnishing, household equipment and maintenance, education, health, miscellaneous goods and services, restaurants and hotels, alcoholic beverages, tobacco, kola, recreation and culture, and communication.
On a month-on-month basis, the headline inflation rate increased by 2.09% in November, surpassing the rate recorded in October by 0.35%. This indicates a faster pace of average price level increase in November compared to the previous month.
The annualized percentage change in the average CPI for the 12 months ending November 2023 was 24.01%, reflecting a 5.64% increase compared to the same period in 2022 when it stood at 18.37%. This signifies a sustained upward trajectory in the average price level over the past year.
One of the most concerning aspects of the report is the inflation rate in the food category, which rose to 32.84% on a year-on-year basis in November. This represents an 8.72% increase compared to November 2022. The report identified various contributors to this surge, including higher prices for oil and fats, bread, cereals, fish, potatoes, tubers, fruits, meat, vegetables, coffee, tea, and cocoa.
On a month-on-month basis, the food inflation rate for November was 2.42%, marking a 0.51% increase from October 2023. The report attributed this rise to increased prices in bread and cereals, oil and fat, meat, coffee, tea, cocoa, potatoes, and other tubers.
Excluding volatile items such as farm produce and energy, the core inflation rate stood at 22.38% in November on a year-on-year basis. This reflected a 4.39% increase compared to November 2022 when it was recorded at 17.99%. The exclusion of petrol from core inflation calculations is due to the commodity’s deregulation resulting from the removal of subsidy.
The report highlighted that the highest increases on a year-on-year basis were recorded in transportation prices (by road and air), medical services, actual and imputed rentals for housing, pharmaceutical products, and accommodation.
Responding to the data, the National Bureau of Statistics urged caution, emphasizing the need for policy measures to address the underlying issues contributing to the inflationary pressures. As Nigerians grapple with the economic challenges posed by the soaring inflation rate, policymakers face the formidable task of implementing measures to stabilize prices and foster economic resilience.
