The National Bureau of Statistics (NBS) has reported a notable surge in Nigeria’s inflation rate, which reached 32.7% in September 2024, marking the first increase in three months after a period of decline earlier in the year.
The latest Consumer Price Index (CPI) data indicates a month-on-month rise of 0.55%, contrasting with the previous month’s figures.
According to the NBS, “On a year-on-year basis, the Headline inflation rate was 5.98% points higher compared to the rate recorded in September 2023 (26.72%).”
This increase underscores a significant rise in the rate of price changes compared to the same period last year. The report further detailed that, “the Headline inflation rate in September 2024 was 2.52%, which was 0.30% higher than the rate recorded in August 2024 (2.22%).”
The NBS elaborated on the implications of these figures, stating, “In September 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in August 2024,” emphasising that prices for goods and services rose more sharply than in the previous month.
In conjunction with these findings, the September 2024 Business Expectations Survey (BES), conducted between September 9-13, revealed a cautiously optimistic outlook among firms across Nigeria.
This survey, which engaged 1,750 businesses with a 98%response rate, covered the Industry, Services, and Agriculture sectors, offering insights into business sentiments and key economic challenges for the current and upcoming months.
The food inflation rate was particularly striking, registering 37.77% year-on-year in September 2024, which is an increase of 7.13 percentage points from 30.64% in September 2023.
Month-on-month, food inflation stood at 2.64%, reflecting a 0.27% rise compared to the 2.37% recorded in August 2024.
Rising prices in various categories contributed to this increase, including local and foreign beer in the tobacco class, vegetable oils, and meats such as beef and gizzards. Additionally, staple products like Lipton, Milo, and Bournvita also saw price hikes.
The average annual food inflation rate for the twelve months ending in September 2024 was 37.53%, which represents an 11.88 percentage point increase from the 25.65% recorded in September 2023.
Core inflation, which excludes volatile agricultural products and energy prices, also saw an uptick, reaching 27.43% year-on-year in September 2024, an increase of 5.59 percentage points from 21.84% in September 2023.
The largest price increases were observed in rents, intercity transport fares, and meals at local restaurants. Month-on-month, the core inflation rate was reported at 2.10%, down by 0.17% from 2.27% in August 2024.
Inflation rates also varied between urban and rural areas. In September 2024, the urban inflation rate was 2.67% , up by 0.28 percentage points from 2.39% in August, while the rural inflation rate stood at 2.39%, reflecting a 0.33 percentage point increase from 2.06%the previous month.