Timeline: 4 times Nigeria’s inflation rate hit 28-year high in 2024

• Nigeria’s inflation rate has continued to soar in 2024
• TheRadar highlights the inflation rate trajectory in the year
• The inflation rate surpassed a 28-year threshold four times in 2024

The National Bureau of Statistics (NBS) recently released the Consumer Price Index (CPI) report, which showed that Nigeria’s inflation rate increased by 0.72 per cent increase from October’s rate of 33.88 per cent to 34.60 per cent in November.

The report noted that the surge in inflation was primarily driven by the increase in the prices of food and energy.

The November rate set a new record of the highest inflation rate in Nigeria in 28 years and the fourth time inflation will climb to such height in 2024.

In this light, TheRadar chronicles the timeline of Nigeria’s inflation rate in 2024, highlighting the four times inflation in Nigeria surpassed 28-years record high.

Timeline of inflation rate in 2024

The inflation rate of January 2024 followed the trend of increase recorded in 2023. The rate rose from 28.92 per cent in December 2023 to 29.90 per cent in January 2024, representing a 0.98 per cent increase.

The increase was sustained in February 2024 as it increased to 31.70 per cent, a 1.80 per cent rise from the January rate.

1. March comes with a new twist

In March 2024, the rate surpassed a 28-year high, reaching 33.20 per cent, a 1.50 per cent increase from the February 2024 rate of 31.70 per cent.

Inflation further increased in April 2024, increasing to 33.69 per cent, representing a 0.49 per cent increase from the March rate.

2. Second 28-year high

May 2024 saw the inflation rate mark another milestone. The rate saw a new 28-year high of 33.95 in May, a 0.26 per cent increase from that of April and a year-on-year increase of 11.54 per cent from the 22.41 per cent recorded in May 2023.

3. Inflation rate reached its third 28-year high in June

In June 2024, the inflation figures soared to a 28-year high of 34.19 per cent, driven by increases in the prices of food.

The June 2024 rate was 0.24 percentage points higher than the 33.95 per cent recorded in May 2024 and 11.40 percentage points higher than the rate recorded in June 2023, which was 22.79 per cent.

However, in July 2024, the rate dropped to 33.40 per cent after 19 months of consistent increase.

The 0.79 percentage month-on-month drop from the June figures was the first decline in the headline inflation rate since December 2022, when it last dropped to 21.34 per cent.

Nigeria also recorded two consecutive months of decline in the inflation rate in August 2024 when it reduced to 32.15 per cent, a 1.25 percentage decrease compared to the 33.40 per cent recorded in July 2024.

4. The upward trend continues in September

There was a reversal in the downward trajectory of inflation in Nigeria as the rate rose by 0.55 per cent to 32.70 per cent in September 2024.

The NBS attributed the rise to increases in transportation costs and food prices, which were recorded in September.

It said the increases affected food and non-alcoholic beverages by 16.94 per cent, housing, water, electricity, gas, and other fuel by 5.47 per cent, clothing and footwear by 2.50 per cent, transport by 2.13 per cent, furnishings, and household equipment and maintenance by 1.64 per cent, education by 1.29 per cent and health by 0.98 per cent.

In October 2024, the rate increase was sustained, climbing to 33.88 per cent, a 1.18 per cent month-on-month increase from the September rate.

The increase in inflation in October was attributed to factors such as higher food prices, increased transportation costs due to fuel price hikes, volatility in the foreign exchange (forex) market, and increased money supply.

5. The fourth 28-year high

For the third time in the year, Nigeria’s inflation rate surpassed a 28-year record high as the rate surged to 34.60 per cent in November 2024.

It increased by 0.72 per cent from October 2024 rate of 33.88 per cent and increased year-on-year by 6.40 per cent from the 28.20 per cent recorded in November 2023, driven by increases in food prices.

Inflation: Nigerians to spend 54.9% income on food in next 6 months, projects CBN

Meanwhile, TheRadar reported that according to a recent survey by the Central Bank of Nigeria (CBN), 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.