Updated: Nigerians Face More Hardship, As Inflation Hits 21.09% In October

Nigeria’s headline inflation hit 21.09 per cent in October 2022, rising from the 20.77 per cent reported in September. This indicates Nigerians are facing high cost of living in Africa’s largest economy. 

The inflation level for last month was 5.09 per cent higher, compared to the rate recorded in October 2021, which was 15.99 per cent, the National Bureau of Statistics (NBS) disclosed on Tuesday. 

Although on a month-on-month period, the headline inflation grew by 1.24 per cent in October when compared to the rate in the previous month, however, it fell below the 1.36 per cent month-on-month hike recorded in September.

Explaining the reason for the dip in the month-on-month rate, the bureau said the harvest season is driving the decline, “Over the past three months, there has been a decline in headline inflation on a month-on-month basis due to a decline in the changes in the food index relative to the reference month index. This can be due to the present harvesting season.” 

However, in a single year growth between October last year and same month in 2022, the have been an increase in inflation, “percentage change in the average CPI for the twelve months ending October 2022 over the average of the CPI for the previous twelve months period was 17.86%, showing a 0.91% increase compared to the 16.96% recorded in October 2021,” NBS reported. 

In the report Consumer Product Index and Inflation Report, the statistics office cited disruption in the supply of food products, increase in cost of importation due to the persistent currency depreciation, and a general increase in the cost of production, such as increase in energy cost, as reasons for the year-on-year inflation growth. 

Similarly, the Food inflation increased from the 23.34 per cent posted in September 2022, to 23.72 per cent in October, recording 5.39 per cent year-on-year growth when compared to the 18.34 per cent rate recorded in October 2021. 

“The rise in food prices was caused by increases in prices of Bread and cereals, Food products n.e.c, Potatoes, yams and other tubers, oil and fat,” NBS said. 

The report further reads, “On a month-on-month basis, the food cost  rate in October was 1.23%, this was a 0.21% decline compared to the rate recorded in September 2022 (1.43%). This decline was attributed to the reduction in prices of some food items like Tubers, Palm oil, Maize, Beans, and Vegetables. 

“The average annual rate of food inflation for the twelve months ending October 2022 was 19.83%, which was a 0.92% points decline from the average annual rate of change recorded in October 2021 (20.75%).” 

Addressing the Urban inflation rate, NBS said, “On a year-on-year basis, in October 2022, the urban inflation rate was 21.63%, this was 5.11% higher compared to the 16.52% recorded in October 2021. 

“On a month-on-month basis, the urban inflation rate was 1.33% in October 2022, this was a 0.12% decline compared to September 2022 (1.46%). 

“The corresponding twelve-month average for the urban inflation rate was 18.38% in October 2022. This was 0.85% higher compared to the 17.53% reported in October 2021.” 

Also commenting on the Rural inflation, the bureau revealed, “The rural inflation rate in October 2022 was 20.57% on a year-on-year basis; this was 5.09% higher compared to the 15.48% recorded in October 2021. 

“On a month-on-month basis, the rural inflation rate in October 2022 was 1.16%, which was down by 0.11% compared to September 2022 (1.27%). The corresponding twelve-month average for the rural inflation rate in October 2022 was 17.38%. This was 0.98% higher compared to the 16.39% recorded in October 2021.” the report reads.