Inflation Rate Accelerates to 32.70% in Nigeria

Nigeria’s headline inflation accelerated by 55 basis points to 32.70% year on year in September from 32.15% in August, the statistics office said in a latest report today.

Consumer price index reversed downward trend following an upward adjustment to petrol pump price as transportation costs increased significantly over the last two months.

The surge in transport costs has raised market prices of goods across the country, and thus shift Nigeria’s misery index upward as citizens battle with high costs of everything and anything without palliative measures.

According to the National Bureau of Statistics, on a month-on-month basis, headline inflation increased by 30 basis points to 2.52% from 2.22% in August. NBS reported that food inflation increased by 25 basis points to 37.77% month on month from 37.52% in August.

The rise in food inflation on a year on-year basis was caused by increases in prices of the following items: Guinea Corn, Rice, Maize grains, Beans, Yam, Water Yam, Cassava Tuber, Beer (Local and Foreign.

Other inflation drivers include increase in prices of Lipton, Milo, Bournvita, etc (Coffee, Tea & Cocoa Class) and Vegetable Oil, Palm Oil, etc (Oil & Fats Class).

On a month-on-month basis, food inflation settled at 2.64%, relative to the 2.37% m/m recorded in August. Surprisingly, core inflation (All items less farm produce and energy) moderated by 15 basis points to 27.43% year on year from 27.58% in the preceding month.

Despite the slowdown, the core basket remains elevated in line with notable prices increases recorded across the following items: Rents (Actual and Imputed Rentals for Housing Class), Bus Journey intercity, Taxi Journey per drop, etc (under Passenger Transport by Road Class), Meal at a local Restaurant (Accommodation Service Class), Laboratory service, Consultation Fee of a medical doctor, etc (under Medical Services Class).

Likewise, the core index eased by 17 basis points to 2.10% month on month  in September 2024 compared to 2.27% reported in the previous month.  # Inflation Rate Accelerates to 32.70% in Nigeria

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