Nigeria witnessed a staggering surge in headline inflation, reaching 27.33 percent in October 2023, marking an 18-year high. The National Bureau of Statistics attributes this rise to the persistent depreciation of the naira and escalating prices of food and fuel.
The Consumer Price Index report, unveiled today, disclosed a significant increase from the previous month’s 26.72 percent, maintaining an upward trajectory for ten consecutive months this year, with only a brief pause in December 2022.
While the inflation rate aligned closely with expert projections, the month-over-month increase stood at 1.73 percent, showing a slight dip from September’s 2.10 percent. This implies a moderation in the rate of average price level increase compared to the previous month.
A breakdown of the NBS report reveals that food and non-alcoholic beverages contributed the most (14.16 percent) to the headline index surge, followed by housing, water, electricity, gas, and other fuel (4.57 percent). Notably, food inflation, constituting 50 percent of the overall rate, reached an 18-year high of 31.52 percent in October.
The increase in prices of essential items like oil and fat, bread, cereals, and various food products contributed to the alarming food inflation rate. Core inflation, excluding volatile agricultural produce, reached 22.58 percent year-on-year in October, up by 5.12 percent from October 2022.
Nigeria now faces economic challenges as inflation continues its upward spiral, impacting various sectors including housing, transportation, and essential goods.