Tough Christmas Ahead as Inflation Hits 28.20%, Prices of Rice, Yam, Bread, Others Worse Off

• The inflation rate has risen for November 2023 to 28.20 per cent, an increase of 0.87% from the October 2023 rate
• The National Bureau of Statistics (NBS) data shows that food prices are the most affected
• Also, urban, rural, and core inflation rates spiked for November 2023, compared to the same period last month

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The overall inflation for November 2023 rose to 28.20%, exceeding October figures of 27.33% and showing a monthly rise of 0.87%.

Compared to the same month in 2022, the yearly headline inflation rate was higher, marking a rise of 6.7% from the 21.47% recorded in the same month the year before.

Food inflation hits an all-time high

Also, every month, the inflation rate for November 2023 was about 2.09%, showing a 0.35% rise from the October figure of 1.73%.

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The development signifies that the rate of average price level increase in November 2023 surpassed the one seen in October 2023.

For November, food inflation stood at 32.8%, an increase of 8.72 percentage points from the November rate of 24.13%

Higher prices in bread and cereals, oil and fat, potatoes, yam tubers, fruit, fish, and vegetables drive food inflation.

According to reports, core inflation, apart from volatile agricultural products and energy prices, reached 22.38% in November 2023.

The rise shows an increase of 4.39% compared to the November 2022 figure of 17.99%.

The core inflation rate for November for this year every month stood at 1.55%, indicating an increase from the October 2023 rate of 1.39%, with a rise of 14%.

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Urban and rural inflation rise

The urban inflation rate for November 20235 reached about 30.21%, an increase of 8.15% from the November 2022 rate of 22.09%.

Every month, the urban inflation rate for November 2023 stood at 2.23%, showing a 0.41% rise compared to the October figure of 1.81%.

The rural inflation rate for November stood at 26.43%, showing a rise of 5.55 percentage points from the November 2022 rate of 20.88%.

Every month, the rural inflation rate for this year stood at 1.99%, indicating an increase of o.31 percentage points compared to the October 2023 rate of 1.63%.

Chiemezie Iheme, a social commentator, blamed Nigeria's import-dependent tendencies for the rise in the price of items.

He said Nigeria needs to rise quickly to tame the monster of food inflation.

"If you look at the current rate, food inflation has increased by more than 33% month-month, meaning that the arrowhead for inflation in Nigeria is always food.

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"We need to focus on food production for local consumption before thinking of export. Food inflation is choking house incomes and driving Nigerians deeper into poverty," he said.

“No More N1k/$:’ CBN sets new exchange rate, inflation targets for Nigeria as naira crashes

Legit.ng reported that the Central Bank of Nigeria (CBN) declared on Thursday, November 15, 2023, in Abuja that the rising exchange rates in Nigeria will reduce in 2024.

The bank also forecasted fewer earnings from oil exports in the 2024 fiscal year, declaring that total trade from the Nigerian Forex market stood at N18.804 billion in Q3 of 2023.

Olayemi Cardoso, the CBN Governor, disclosed this during his presentation to the National Assembly Joint Committee on Banking, Insurance, and Other Financial Institutions.

Source: Legit.ng