Nigeria’s inflation rate climbs to 33.88% in October 2024
By Jeffrey Agbo
Nigeria’s inflation rate surged to 33.88% in October 2024, marking an increase from 32.7% in September 2024—a rise of 1.18 percentage points month-on-month.
This is according to the National Bureau of Statistics (NBS) Consumer Price Index (CPI) report, which cited higher transportation costs and rising food prices as key drivers of the inflationary pressures.
Year-on-Year Increase
On a year-on-year basis, inflation in October 2024 was 6.55 percentage points higher than the 27.33% recorded in October 2023, reflecting a significant rise in inflation over the past year.
Month-on-Month Inflation Trend
On a month-on-month basis, the headline inflation rate stood at 2.64% in October 2024, slightly up from the 2.52% recorded in September 2024, indicating a faster pace of price increases compared to the previous month.
Food Inflation Surge
Food inflation in October 2024 hit 39.16% year-on-year, a jump of 7.64 percentage points from the 31.52% recorded in October 2023. On a month-on-month basis, food inflation rose to 2.94%, a 0.30 percentage point increase from the 2.64% recorded in September 2024. The rise was driven by price hikes in items such as local and foreign beer (tobacco class), vegetable oils (oil and fats class), as well as beef, gizzards, and dried beef (meat class). Popular brands like Lipton, Milo, and Bournvita also saw price increases.
The average annual food inflation rate for the 12 months ending in October 2024 stood at 38.12%, up 11.79 percentage points from the 26.33% recorded in the same period the previous year.
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Core Inflation Analysis
Core inflation, which excludes volatile agricultural and energy prices, reached 28.37% year-on-year in October 2024. This represents a 5.79 percentage point rise from the 22.58% recorded in October 2023. Significant price increases were seen in categories such as city and intercity bus journeys, rents (both actual and imputed), meals at local restaurants, and personal grooming services (e.g., haircuts and hairstyling).
On a month-on-month basis, core inflation was 2.14% in October 2024, slightly up from the 2.10% recorded in September 2024.
Twelve-Month Average Inflation
The twelve-month average inflation rate for the period ending October 2024 stood at 26.12%, up by 6.14 percentage points compared to 19.98% in October 2023.
Regional Inflation Differences
On a year-on-year basis, urban inflation in October 2024 stood at 36.38%, up 7.09 percentage points from 29.29% in October 2023. The month-on-month urban inflation rate was 2.75%, an increase of 0.08 percentage points from 2.67% in September 2024. The twelve-month average urban inflation rate for October 2024 was 34.52%, a sharp rise of 9.76 percentage points from 24.76% recorded in the same month last year.
Meanwhile, rural inflation in October 2024 stood at 31.59% year-on-year, up by 6.01 percentage points from 25.58% in October 2023. Month-on-month, rural inflation was 2.53%, an increase of 0.14 percentage points from 2.39% in September 2024. The twelve-month average rural inflation rate for October 2024 was 30.24%, an increase of 8.01 percentage points compared to 22.23% in October 2023.
This sharp rise in Nigeria’s inflation paints a picture of increasing economic strain, driven by rising costs across key sectors, particularly transportation and food.