Nigeria's annual inflation rate increased for the first time in three months, reaching 32.7% in September, fueled by rising gasoline prices and severe flooding in key agricultural regions. The National Bureau of Statistics (NBS) released the latest data on Tuesday, October 15, which showed a jump from August's inflation rate of 32.2%.
This marks the first inflationary rise after two consecutive months of decline in 2024. According to the NBS, "In September 2024, the headline inflation rate was 32.70%, compared to 32.15% in August 2024." The increase of 0.55% reflects the pressure on consumer prices, with the annual inflation rate 5.98 percentage points higher than the 26.72% recorded in September 2023.
On a monthly basis, inflation also accelerated, with the rate in September reaching 2.52%, an increase of 0.30% compared to August’s 2.22%. This indicates that the average price level rose more rapidly in September than in the previous month.
Food inflation, in particular, saw a significant jump, rising to 37.77% year-on-year in September 2024, up by 7.13 percentage points from 30.64% in September 2023. The NBS attributed this increase to the higher costs of essential food items such as guinea corn, rice, maize, grains, and beans, as well as staples like yam, cassava, and other tubers. The rise in food inflation also extended to beverages, oils, and fats, with products like vegetable oil, palm oil, Lipton, Milo, and Bournvita contributing to the upward trend.
Month-on-month, food inflation also experienced a modest increase, climbing to 2.64% in September 2024, up from 2.37% in August. This was driven by rising prices in items such as beer, cooking oils, beef, and other meat products, along with coffee, tea, cocoa, and dairy products like milk and eggs.
The NBS noted that the average annual food inflation rate for the twelve months ending in September 2024 was 37.53%, a significant increase from the 25.65% recorded in September 2023. This sharp rise highlights the growing cost of food for Nigerians, exacerbated by supply chain disruptions, adverse weather conditions, and inflationary pressures across various sectors.
The combination of rising fuel costs, which have impacted transportation and production, and flooding in key food-producing areas, has further strained the economy, contributing to the overall rise in inflation. These challenges come as Nigeria continues to grapple with economic instability and efforts to manage the country’s growth trajectory amidst global and domestic pressures.
As Nigerians face higher prices for basic goods, the government may come under increased pressure to address the underlying causes of inflation, including fuel pricing policies and the impacts of climate change on agriculture.
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