In October 2024, Nigeria’s headline inflation rate rose sharply to 33.88%, up from 32.7% in September, as the country continues to face the steep costs of goods and services.
The National Bureau of Statistics (NBS) attributed this increase to factors such as rising transportation expenses and higher food prices.
On a year-on-year basis, the rate reflected a significant 6.55 percentage point jump from the 27.33% recorded in October 2023. Month-on-month, the inflation rate for October 2024 was 2.64%, slightly higher than the 2.52% noted in September, indicating a continued acceleration in price growth.
Food inflation reached 39.16% year-on-year in October 2024, compared to 37.77% in September. Month-on-month, food inflation rose to 2.94%, driven by increased prices for items like beer, vegetable oils, meats, and popular products such as Lipton and Milo. The average annual food inflation for the past 12 months ending in October 2024 was 38.12%, a significant leap from the 26.33% recorded the previous year.
Core inflation, which omits volatile agricultural and energy prices, hit 28.37% year-on-year in October 2024, up from 22.58% in October 2023. Price hikes were most notable in urban transport, housing rents, dining, and personal grooming services. On a month-to-month basis, core inflation edged up to 2.14% from 2.10% in September. The 12-month average core inflation rate stood at 26.12%, up from 19.98% a year ago.
Urban inflation showed an even sharper rise, hitting 36.38% in October 2024, an increase of over 7 percentage points from 29.29% in October 2023. Month-on-month, urban inflation climbed to 2.75%, up slightly from 2.67% in September. The average urban inflation over the last 12 months was 34.52%, significantly higher than the 24.76% recorded in October 2023.
Rural areas saw an inflation rate of 31.59% year-on-year in October 2024, up from 25.58% in October 2023. Month-on-month, rural inflation reached 2.53%, compared to 2.39% in September. The average rural inflation for the 12-month period ending in October 2024 was 30.24%, a notable rise from 22.23% a year prior.
Earlier projections from economists had suggested this inflation spike, driven by persistent factors such as food price surges, energy costs, currency instability, and increased money supply. The inflation report precedes the upcoming Monetary Policy Committee meeting, where discussions could potentially lead to a further hike in the Central Bank of Nigeria’s Monetary Policy Rate.
