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- Nigeria’s inflation rate reached a new 28-year high of 34.60 per cent in November
- The rate exceeds the previous highest rate of 34.19 per cent recorded in June 2024.
- Food, core, urban, and rural inflation rates also increased in November 2024
Nigeria’s inflation rate reached a new 28-year high of 34.60 per cent in November 2024, a 0.72 per cent increase from October’s rate of 33.88 per cent.
The latest Consumer Product Index (CPI) report released by the National Bureau of Statistics (NBS) on Monday, December 16, shows a year-on-year increase of 6.40 per cent from the 28.20 per cent recorded in November 2023.
The report also noted that the rise in inflation is driven by increases in food prices, which accounts for most of what Nigerians spend their finances on.
The report read, “In November 2024, the Headline inflation rate was 34.60 per cent relative to the October 2024 headline inflation rate of 33.88 per cent.
“Looking at the movement, the November 2024 Headline inflation rate showed an increase of 0.72 percentage points compared to the October 2024 Headline inflation rate.
“On a year-on-year basis, the Headline inflation rate was 6.40 percentage points higher than the rate recorded in November 2023 (28.20 per cent). This shows that the Headline inflation rate (year-on-year basis) increased in November 2024 compared to the same month in the preceding year (i.e., November 2023).”
On a month-on-month basis, the headline inflation rate declined marginally to 2.638 per cent in November compared to 2.640 per cent in October.
November rates set a new 28-year high
The November inflation figure sets a new 28-year high, exceeding the previous highest rate recorded in June 2024, which was 34.19 per cent. It also exceeded analysts’ prediction of 34.3 per cent.
Nigeria’s inflation rate has been surging, significantly jumping from 22.4 per cent in May 2023 to 34.19 per cent in June 2024.
The rate, however, decelerated to 33.40 per cent in July after 19 months of upward trend, marking two consecutive months of decline in August at 32.15 per cent before increasing to 32.70 per cent in September 2024 and further increased to 33.88 per cent in October 2024.
Food inflation rate reached 39.93 per cent
The NBS report also shows that food inflation has also risen to 39.93 per cent in November 2024, up from 32.84 per cent in the same period in 2023.
The rise in food inflation was attributed to the increase in the prices of staple foods such as yam, rice, maize, and palm oil, as well as guinea corn, millet, and meat.
Food inflation increased by 2.98 per cent on a month-on-month basis from 2.94 per cent recorded in October, attributed to increases in the prices of such items as fish, rice, dairy products, and meat.
The average food inflation rate in the 12-month period ending November 2024 reached 38.67 per cent, representing an 11.58 percentage point increase from the 27.09 per cent recorded in 2023.
Core inflation rate rises to 28.75 per cent
According to the NBS report, core inflation, which excludes food and energy prices, increased to 28.75 per cent in November 2024, compared to the 22.38 per cent recorded in November 2023.
On a month-on-month basis, core inflation slightly decreased to 1.83 per cent in November from the 2.14 per cent recorded in October.
The twelve-month average for core inflation reached 26.64 per cent, increasing from the 20.35 per cent recorded in November 2023.
Inflation rate increases by region and state
On a regional and state basis, Bauchi, Kebbi, and Anambra States recorded the highest year-on-year inflation rates at 46.21 per cent, 42.41 per cent, and 40.48 per cent, respectively.
Delta, Benue, and Katsina Stated on the other hand recorded the lowest inflation rates, which ranged between 27.47 per cent and 29.57 per cent.
On a month-on-month basis, Yobe, Kebbi, and Kano States recorded the highest inflation increases at 5.14 per cent, 5.10 per cent, and 4.88 per cent, respectively, while Adamawa, Osun, and Kogi recorded the slowest rises in inflation.
The highest year-on-year food inflation rates were recorded in Sokoto, Yobe, and Edo at 51.30 per cent, 49.69 per cent, and 47.77 per cent, respectively.
Food inflation was, however, slower in Kwara, Kogi, and Rivers, with year-on-year rates of 31.39 per cent, 32.95 per cent, and 33.27 per cent, respectively.
On a month-on-month basis, food inflation saw a steep rise in Yobe, Kano, and Kebbi States at 6.52 per cent, 5.95 per cent, and 5.68 per cent, respectively.
Urban versus rural inflation rates
Urban inflation reached 37.10 per cent in November 2024, an increase of 6.88 per cent from the 30.21 per cent recorded in November 2023.
On the other hand, rural inflation reached 32.27 per cent, a 5.84 per cent increase from the rate recorded in 2023.
On a month-on-month basis, urban inflation increased by 2.77 per cent, while rural inflation increased by 2.51 per cent.
The 12-month average for urban inflation was 35.07 per cent, a 9.62 percentage point increase from 25.45 per cent in November 2023.
The 12-month average for rural inflation was 30.71 per cent, an 8.00 per cent increase from the 22.71 per cent recorded in November 2023.
Inflation: Nigerians to spend 54.9% income on food in next 6 months, projects CBN
Meanwhile, TheRadar reported that a recent survey by the Central Bank of Nigeria (CBN) shows that the escalating inflation rate in Nigeria is expected to lead households to dedicate the largest portion of their earnings to food expenses over the next six months.
The survey, conducted from July 22 to 26, 2024, reveals that the inflation rate has surged to 33.40 per cent, with food inflation exceeding 40 per cent. The data, which was derived from a sample of 1,665 households across the 36 states and the Federal Capital Territory, shows a significant shift in consumer spending patterns due to the economic pressures.
