High Demand For Beer, Egg, Meat Pushes Food Inflation To 39.70— NBS

After two consecutive months of decrease, Nigeria’s headline inflation in September 2024, rose to 32.70 per cent against the 32.15 per cent recorded in August 2024.

According to the September Consumer Price Index (CPI) report, the figure represents a marginal increase of 0.55 per cent against the figure in August.

The report released on Tuesday said inflation rose on a year-on-year basis, by 5.98 percentage points compared to the 26.72 per cent recorded in September 2023.

The NBS attributed the marginal surge in prices for food and non-alcoholic beverages, which continue to be major contributors to inflation.

During the review period, the NBS said on a divisional level, food and non-alcoholic beverages contributed 16.94 per cent to inflation, housing, water, electricity, gas and other fuel contributed 5.47 per cent while clothing and footwear accounted for 2.50 per cent, among others.

The NBS said, “In August 2024, the headline inflation rate further eased to 32.15 per cent relative to the July 2024 headline inflation rate of 33.40 per cent.

“Looking at the movement, the September 2024 headline inflation rate showed an increase of 0.55 per cent points when compared to the August 2024 headline inflation rate.

“However, on a year-on-year basis, the headline inflation rate was 5.98 per cent points higher compared to the 26.72 per cent rate recorded in September 2023.”

Further breakdown of the report showed the food inflation rate in September 2024 was 37.77 per cent, rising by 7.13 per cent on a year-on-year basis, compared to the 30.64 per cent rate recorded in September 2023.

The rise in food inflation on a year-on-year basis was caused by increases in prices of bread, maize, grains, guinea corn, yam, Irish potatoes, water yam, cassava tuber; palm oil, and vegetables, amongst others.

On a month-on-month basis, the food inflation rate in August 2024 stood at 39.70 per cent, a slight increase of 0.27 per cent compared to the 39.43 per cent recorded in August 2024.

The case was not different in the urban areas where the inflation rate rose to 35.13 per cent, which was 6.46 per cent points higher when compared to the 28.68 per cent recorded in September 2023.

On a month-on-month basis, the Urban inflation rate was 0.28 per cent points higher than the August 34.58 per cent rate.

The rural inflation rate in September 2024 was 30.49 per cent yearly. This was 5.55 per cent higher than the 24.94 per cent recorded in the preceding year.

Recall that THE WHISTLER had reported that the recent decline in inflation recorded in July and August may not continue into September.

The Head of Research at FSL Securities Limited, Mr Victor Chiazor, in an exclusive chat with THE WHISTLER, raised concerns about the potential impact of an upward revision in Premium Motor Spirit (PMS) prices, which could exert additional inflationary pressure.

“The moderation in headline inflation for two consecutive months offers some relief, especially given that both headline and month-on-month inflation have eased,” he said.

Chiazor, however, noted that “While food inflation has provided some relief, core inflation remains a concern. The persistent rise in less volatile goods signals ongoing inflationary pressures that require close monitoring.”