Joy Agwunobi
The National Bureau of Statistics (NBS) has reported that Nigeria’s inflation rate rose to 32.7 per cent in September 2024, marking its first increase in three months following a period of decline earlier in the year.
The latest Consumer Price Index (CPI) data shows a month-on-month increase of 0.55 per cent, in contrast to the previous month’s figures. The report highlights that the inflation spike was driven by rising transportation and food prices, further compounded by the recent fuel price hike by the NNPCL in September.
According to the NBS, “On a year-on-year basis, the headline inflation rate was 5.98 percentage points higher compared to the rate recorded in September 2023 (26.72%).” Additionally, the report noted that on a month-on-month basis, the headline inflation rate in September 2024 stood at 2.52 per cent, a 0.30 per cent increase from the 2.22 per cent recorded in August 2024, reflecting a faster rise in average price levels during the period.
The NBS also pointed out that the average CPI for the twelve months ending September 2024 showed a 31.73 per cent rise, which is 8.83 per cent higher than the 22.90 per cent recorded during the same period in 2023.
Food inflation in September 2024 climbed to 37.77 per cent on a year-on-year basis, representing a 7.13 per cent increase compared to the 30.64 per cent recorded in September 2023. The increase in food inflation was attributed to price hikes in items such as Guinea Corn, Rice, Maize, Beans (Bread and Cereals Class), Yam, Cassava, and Palm Oil (Potatoes, Yam & Other Tubers Class), along with Beer, Lipton, and Bournvita (Coffee, Tea & Cocoa Class).
On a month-on-month basis, the report noted that food inflation in September 2024 reached 2.64 per cent, a 0.27 per cent rise from August’s rate of 2.37 per cent, adding that the increase was driven by higher prices for items like Vegetable Oil, Beef, Gizzard, and Milk among others.
The report further noted that the average annual rate of food inflation for the twelve months ending September 2024 stood at 37.53 per cent , an 11.88 per cent rise compared to the 25.65 per cent recorded in September 2023.
The report further noted that core inflation, which excludes agricultural and energy prices, reached 27.43 ;per cent on a year-on-year basis in September 2024, up by 5.59 percentage points from 21.84 per cent in September 2023. The largest increases were seen in rent prices, bus fares, medical consultations, and meals at local restaurants.
On a month-on-month basis, core inflation fell to 2.10 per cent in September 2024 from 2.27 per cent in August. The NBS reported that the average annual core inflation rate for the twelve months ending September 2024 was 25.64 per cent, 6.09 percentage points higher than the 19.55 per cent recorded in September 2023.
Additionally, urban inflation rose to 35.13 per cent on a year-on-year basis in September 2024, 6.46 per cent higher than the 28.68 per cent recorded in September 2023. On a month-on-month basis, urban inflation increased to 2.67 per cent in September 2024, compared to 2.39 per cent in August. The average twelve-month inflation rate for urban areas stood at 33.95 per cent , up 9.84 per cent from the 24.10 per cent reported in September 2023.
Meanwhile, rural inflation in September 2024 was 30.49 per cent on a year-on-year basis, a 5.55 per cent increase from 24.94% in September 2023. Month-on-month rural inflation rose to 2.39 per cent , a 0.33 per cent increase from August’s 2.06 per cent. The twelve-month average rural inflation rate was 29.76 per cent, up 7.97% from 21.79% in September 2023.
The state-by-state analysis revealed that Bauchi recorded the highest year-on-year all-items inflation in September 2024 at 44.83%, followed by Sokoto (38.74%) and Jigawa (38.39%). The lowest rates were recorded in Delta (26.35%), Benue (26.90%), and Katsina (27.71%).
On a month-on-month basis, Sokoto led with the highest inflation increase at 4.63%, followed by Taraba (4.07%) and Anambra (3.74%), while Kwara (1.14%), Cross River (1.78%), and Lagos (1.82%) saw the slowest month-on-month inflation rise.
In terms of food inflation, Sokoto saw the highest year-on-year increase at 50.47 per cent, followed by Gombe (44.09%) and Yobe (43.51%). Kwara (32.45%), Rivers (32.80%), and Kogi (32.83%) recorded the slowest year-on-year rise in food inflation.
On a month-on-month basis,the report noted that Sokoto led with a 5.94% increase, followed by Taraba (5.76%) and Bayelsa (4.44%), while Kwara (0.88%), Cross River (1.29%), and Kogi (1.45%) had the slowest month-on-month increases.
