Inflation Hits 28-Year High Of 34.6% On Food, Energy Costs

Nigeria’s headline inflation rate hit 34.60 per cent in November 2024. This indicates an increase of 0.72 per cent points compared to the October 2024 inflation rate which was 33.88 per cent.

This is the highest in the last 28 years as the people grapple with the burden caused by high costs of food and energy.

On a year-on-year basis, the headline inflation rate was 6.40 per cent points higher than the rate recorded in November 2023 (28.20 per cent), according to the latest Consumer Price Index (CPI) report by the National Bureau of Statistics released Monday.

This shows that the Headline inflation rate (year-on-year basis) increased in November 2024 compared to the same month in the preceding year (i.e., November 2023).

The NBS report further showed that on a month-on-month basis, the Headline inflation rate in November 2024 was 2.638 per cent, which was 0.002 per cent points lower than the rate recorded in October 2024 (2.640 per cent). “This means that in November 2024, the rate of increase in the average price level is slightly lower than the rate of increase in the average price level in October 2024,” the report stated.

In terms of items contribution to the inflation, food & Non-Alcoholic Beverages remained the highest with 17.92 per cent year on year. This was followed by Housing, Water, Electricity, Gas & Other Fuel (5.79 per cent) and Clothing & Footwear (2.65 per cent).

Urban and Rural Inflation

Urban inflation rate went up, on a year-on-years basis, from 30.21 per cent recorded in November 2023 to 37.10 per cent in November 2024. This reflects 6.88 per cent increase.

Similarly, Rural inflation rate increased by 5.84 per cent on year-on-year basis from to 32.27 per cent in November 2024 from 26.43 per cent recorded in November 2023.

Food Inflation

On a year-on-year basis, the Food inflation rate jumped by 7.08 per cent points in to 39.93 per cent in November 2024 from 32.84 per cent recorded in November 2023.

“The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following items: Yam, Water Yam, Coco Yam, etc, Guinea Corn, Maize Grains, Rice, etc, Beer, Pinto, and Palm Oil, Vegetable Oil, etc,” the NBS report stated.

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On a month-on-month basis, the Food inflation rate in November 2024 was 2.98 per cent which shows 0.05% points increase compared to the rate recorded in October 2024 (2.94 per cent). The report said the rise on a month-on-month basis, was due to the rate of increase in the average prices of Mudfish, Catfish Dried, Dried Fish Sadine Rice, Yam Flour, Millet Whole grain, Corn flour, Agric Egg, Powered Milk, Fresh Milk, and Dried Beef, Goat Meat, Frozen Chicken.

Commenting on the inflation report, Chief Economist & Partner at SPM Professionals, Dr Paul Alaje faulted the approach adopted by the authorities in tackling the inflationary pressure on the economy. According to him, the inflation is caused by both monetary and non-monetary factors.

“Nigeria’s Inflation surges from already unthinkable 33.88% to 34.6% y/y. This is expected as we attempt to solve inflationary pressures with conventional approach. The real problem is our FX policy and policies. This inflation is driven by monetary and non-monetary factors,” Alaje stated in a post on X, formerly Twitter