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Inflation Rate Hits 27.33%, Highest Recorded in 20 Years



Inflation in Nigeria

The Inflation rate in Nigeria has risen for the tenth consecutive times in October 2023. According to the report released by the National Bureau of Statistics (NBS), the Consumer Price Index (CPI) which measures inflation increased by 27.33 percent year on year in October 2023.

October inflation is 0.61 percent higher than 26.72 percent recorded in September 2023. The inflation rate in Nigeria was 25.80 percent in August 2023. The inflation rate was 21.09 per cent in October 2022.

October inflation rate is the highest that has been recorded in Nigeria in 2 decades.

However, several Nigerians are not convinced with the data considering the current hike in prices of goods and services in the country following the fall in the value of the nations currency.

Inflation rate in Nigerian since this year:

  • January 21.82%
  • February 21.91%
  • March 22.04%
  • April 22.22%
  • May 22.41%
  • June 22.79%
  • July 24.08%
  • August 25.80%
  • September 26.72%
  • October 27.33%

The YoY contributions of items on the divisional level to the increase in the Headline index are as follows:

  • Food & Non-Alcoholic Beverages 14.16%
  • Housing, Water, Electricity. Gas & Other Fuel 4.57%
  • Clothing & Footwear 2.09%
  • Transport 1.78%
  • Furnishings & Household Equipment & Maintenance. 1.37%
  • Education 1.08 Health. 0.82%
  • Miscellaneous Goods & Services 0.45%
  • Restaurant & Hotels 0.33%
  • Alcoholic Beverage, Tobacco & Kola 0.30%
  • Recreation & Culture. 0.19%
  • Communication 0.19%

On a month-on-month basis, the headline inflation rate in October 2023 was 1.73%, which was 0.37% lower than the rate recorded in September 2023 (2.10%).

On a year-on-year basis, in October 2023, the Urban inflation rate was 29.29%, this was 7.66% points higher compared to the 21.63% recorded in October 2022.

In October, the rural inflation was 25.58% on a year-on-year basis; this was 5.01% higher compared to the 20.57% recorded in October 2022.

The Food inflation rate in October 2023 was 31.52% on a year-on-year basis, which was 7.80% points higher compared to the rate recorded in October 2022 (23.72%).

NBS said the rise “was caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other Tubers, Fish, Fruit, Meat, Vegetables and Milk, Cheese and Eggs.”

According to the report, the “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 22.58% in October 2023 on a year-on-year basis; an increase of 5.12% when compared to the 17.46% recorded in October 2022.

“The highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Passenger Transport by Air, Actual and Imputed Rentals for Housing, Pharmaceutical products etc.,” NBS report shows.

In October 2023, the All-Items inflation rate on a Year-on-Year basis was highest in Kogi (34.20%), Rivers (31.44%), Lagos (31.23%), while Borno (20.06%), Jigawa (23.52%) and Sokoto (24.47%) recorded the slowest rise in Headline inflation on Year-on-Year basis.

Food inflation on a Year-on-Year basis was highest in Kogi (41.74%), Kwara (38.48%) and Lagos (37.37%), while Borno (24.41%), Kebbi (24.90%) and Jigawa (25.10%) recorded the slowest rise in Food inflation on a Year-on-Year basis.

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