No Relief: Nigerians Get Poorer As Inflation Rate Hits 27.33%, Residents of 3 States Worst Hit
- Nigerians continue to face severe economic pressure as inflation rates continue upward trends
- Data from NBS showed that Nigeria's headline inflation rate increased to 27.33%, the highest level in over 18 years
- The latest inflation rate has again shown the dwindling Nigeria's purchasing power and financial hardships
Dave Ibemere has over a decade of experience covering Business and the Economy
The National Bureau of Statistics has revealed that Nigeria's headline inflation rate, which measures the cost of goods and services over a period, rose to 27.33% in October 2023.
This represents a 0.61 % point increase compared to the 26.72%. September 2023.
Source: Twitter
The NBS disclosed this in its consumer price index (CPI) report released for October 2023 on Wednesday, November 15, 2023.
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The latest figure marks the tenth consecutive rise in the country's inflation rate this year.
Details of NBS inflation report
According to NBS, on a year-on-year basis, the headline inflation rate was 6.24% points higher compared to the rate recorded in October 2022, which was 21.09%.
This shows that the headline inflation rate (year-on-year basis) increased in October 2023 compared to the same month in the preceding year (October 2022).
However, on a month-on-month basis, the headline inflation rate in October 2023 was 1.73%, 0.37% lower than in September 2023 (2.10%).
This means that in October 2023, the rate of increase in the average price level is less than the rate of growth in the average price level in September 2023.
Food Inflation rises
NBS also revealed that the food inflation rate is at 31.52%, caused by the increase in some food items such as bread, yams, potatoes, etc.
The report reads in part:
“The Food inflation rate in October 2023 was 31.52% on a year-on-year basis, which was 7.80% points higher compared to the rate recorded in October 2022 (23.72%).
“The rise in food inflation on a year-on-year basis was caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other Tubers, Fish, Fruit, Meat, Vegetables and Milk, Cheese and Eggs.”
State analysis
Also, NBS revealed the states with the highest and lowest inflation rates and food inflation between October 2022 and October 2023.
For all item inflation, the states with the highest rate are:
Highest:
- Kogi: 34.20%
- Rivers: 31.44%
- Lagos: 31.23%
Slowest Rise:
- Borno: 20.06%
- Jigawa: 23.52%
- Sokoto: 24.47%
For Food inflation, here are the states worst hit
Highest:
- Kogi: 41.74%
- Kwara: 38.48%
- Lagos: 37.37%
Slowest Rise:
- Borno: 24.41%
- Kebbi: 24.90%
- Jigawa: 25.10%
Expert insight
Speaking on the latest inflation figure, Clement Izu, Head of Research, Financial Derivatives Company, said:
"The government needs to be clear about the plans in place to tackle inflation figures and targets. The British Prime Minister announced in January a plan to reduce inflation figures by half. Currently, it stands at 4.6%, down from 11.6%.
"In the US, the government stated the necessity of implementing the Inflation Act to address energy costs. Within a few months, inflation dropped to 3.2%. Similarly, Ghana initiated its own process, reducing inflation from 56% to 32.2%.
"The factors driving inflation in Nigeria are evident and similar to most of these countries: high money supply, exchange rates, and fiscal deficits.
"Our fiscal and monetary policy managers must communicate how they are addressing these challenges and proceed to resolve them."
Legit.ng weekly price check: Rice sellers groan as bag sells for N32,000 in popular Lagos market
Meanwhile, in another report, Legit.ng showed first-hand that the rise and fall of food prices have become the new normal in the Lagos market.
While politicians are busy with the forthcoming general election in 2023, traders and buyers are worried about the current market condition.
This week's food prices have increased by over 5% at the market as some are unavailable.
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Source: Legit.ng
