The escalating prices of food and non-alcoholic beverages in the country have immensely contributed to the rise in the October 2024 headline inflation rate, which stood at 33.88 percent relative to 32.70 percent recorded in the preceding month.
Looking at the trend, the October 2024 headline inflation rate showed an increase of 1.18 percent points compared to that of September 2024.
On a year-on-year basis, the headline inflation rate was 6.55 percent points higher compared to the 27.33 percent rate recorded in October 2023.
The National Bureau of Statistics (NBS) which released the data on Friday attributed the spike in the October inflation rate majorly to the rising cost of food and non-alcoholic beverages in the country.
The Food sub-index for October 2024 increased to 39.16 percent year-on-year, a 7.46 percent point higher than the 31.52 percent rate recorded in October 2023.
“The increase in the headline index for October 2024 was attributed to the rise in the average price of some items in the basket of goods and services at the divisional level.
“These increases were observed in Food and non-alcoholic Beverages (17.55%), Housing, Water, Electricity, Gas & other Fuel (5.67%), Clothing & Footwear (2.59%), Transport (2.20%), Furnishings & Household Equipment and maintenance (1.70%), Education (1.34%) and Health (1.02%).
“Others are Miscellaneous Goods & Services (0.56%), Restaurants & Hotels (0.41%), Alcoholic Beverages, Tobacco & Kola (0.37%), Recreation & Culture (0.23%) and Communication (0.23%),” the NBS stated.
The Central Bank of Nigeria (CBN) has hiked interest rates five times this year to get inflation under control, and it will hold another rate-setting meeting later this month.
Inflation quickened sharply in the second half of 2023 after President Bola Tinubu devalued the Naira, and cut subsidies to lift economic growth and shore up public finances.
Inflation started to ease in July 2024 as the impact of the naira devaluation began to fade, before a series of petrol price increases again spurred inflationary pressures, exacerbating the worst cost-of-living crisis in decades in Africa’s most populous nation.
On a month-over-month basis, the headline inflation rate in October 2024 also rose to 2.64 percent, compared to the 2.52 percent rate recorded in September 2024, showing the rate of increase in the average price level was higher than that of the preceding month by 0.12 percent.
The percentage change in the average CPI for the twelve months ending October 2024 over the average CPI for the previous corresponding twelve-month period was 32.26 percent, showing an 8.82 percent increase compared to 23.44 percent recorded in October 2023.
The rise in Food inflation on a year-on-year basis was attributed to increases in prices of Guinea Corn, Rice, Maize Grains, Rice, etc. (Bread and Cereals Class), Yam, Water Yam, Coco Yam, etc (Potatoes, Yam & Other Tubers Class), Palm Oil, Vegetable Oil, etc. (Oil and Fats Class) and Milo Lipton, Bournvita, etc. (Coffee, Tea & Cocoa Class).
Likewise, on a month-on-month basis, the Food inflation rate in October 2024 was 2.94 percent, 0.30 percent higher compared to the 2.64 percent rate recorded in September 2024.
The NBS said the rise in Food inflation was caused by an increase in the average prices of Palm Oil, Vegetable oil, etc. (Oil & Fats Class), Mudfish, Croaker (Apo), Fresh fish (Obokun), etc. (Fish Class), Dried Beef, Goat Meat, Mutton, Skin meat, etc (Meat Class), and Bread, Guinea Corn flour, Plantain flour, Rice, etc. (Bread and Cereals Class).
The average annual rate of Food inflation for the twelve months ending October 2024 over the previous twelve-month average was 38.12%, which was 11.79 percent points increase from the average annual rate of 26.33 percent change recorded in October 2023.
Core inflation rate, which is all items, less volatile farm produces and Premium Motor Spirit (PMS) stood at 28.37 percent in October 2024 year-on-year, showing a rise of 5.79 percent compared to the 22.58 percent recorded in October 2023.
The NBS said the highest increases were recorded in prices of Bus Journey within the city, Journey by motorcycle Bus journeys intercity, etc. (under Passenger Transport by Road Class), Rents (Actual and Imputed Rentals for Housing Class), Meals at a local Restaurant (Accommodation Service Class), and hair cut service, woman hairbrush, women’s hairdressing, etc. (Hairdressing salons & personal grooming establishments Class).
Furthermore, on a month-on-month basis, the Core Inflation rate was 2.14 percent in October 2024, higher by 0.94 percent compared to 2.10 percent in September 2024.
The average twelve-month annual Core inflation rate was 26.12 percent for the twelve months ending October 2024; this was 6.14 percent points higher than the 19.98 percent recorded in October 2023.
The Urban consumer’s inflation rate on a year-on-year basis stood at 36.38 percent for October 2024, this shows a 7.09 percent point higher compared to the 29.29 percent recorded in the corresponding month in the year 2023.
On a month-on-month basis, the urban inflation rate grew by 2.75 percent in October 2024, which shows an increase of 0.08 percent compared to 2.67 percent in September 2024.
The twelve-month average annual urban inflation rate ending October 2024 was 34.52 percent higher than the previous corresponding twelve-month average. This was 9.76 percent points higher than the 24.76 percent reported in October 2023.
The Rural consumer’s sub-index in October 2024 was 31.59 percent on a year-on-year basis; this was 6.01 percent higher compared to the 25.58 percent recorded in October 2023.
On a month-on-month basis, the Rural sub-index in October 2023 was 2.53 percent, which increased by 0.14 percent compared to 2.39 percent in September 2024.
The twelve-month average annual inflation rate ending October 2024 over the previous corresponding twelve-month average, rural inflation rate was 30.24 percent. This was 8.01 percent higher than the 22.23 percent recorded in October 2023.
The NBS pointed out that “the analyses of the States show that the all-item index for October 2024, on a year-on-year basis was highest in Bauchi (46.68%), Kebbi (40.02%), Sokoto (39.64%), while Delta (27.85%), Benue (28.22%) and Katsina (29.59%) recorded the lowest rise in Headline inflation on Year-on-Year basis.
“On a month-on-month basis, October 2024 recorded the highest increases in October 2024 recorded the highest increases in Kano (3.77%), Bauchi (3.74%), Adamawa (3.59%), while Kwara (1.27%), Ondo (1.49%) and Lagos (1.91%) recorded the slowest rise.
“State-level analyses of the food index in October 2024, on a year-on-year basis, showed the highest increases in Sokoto (52.18%), Edo (46.55%), Borno (45.85%), while Kwara (31.68%), Kogi (33.30%) and Rivers (33.87%) recorded the slowest rise.
“On a month-on-month basis, however, October 2024 Food inflation was highest in Adamawa (5.08%), Sokoto (4.86%), and Yobe (4.34%), while Kwara (1.11%), Ondo (1.31%) and Kogi (1.50%) recorded the slowest rise in Food inflation”.
ALSO READ THESE TOP STORIES FROM NIGERIAN TRIBUNE
