Food, Gas, Fuel Costs Push Inflation To 28.20% Ahead Of Christmas, New Year

The general rise in prices of food across Nigeria that was largely triggered by the removal of fuel subsidy in May this year and disruption to the supply chain has significantly impacted the headline inflation, the nation’s statistics bureau said.

Data by the National Bureau of Statistics (NBS) shows that the inflation rate in November 2023 was 32.84 per cent on a year-on-year basis, which was 8.72 percent points higher compared to the rate recorded in November 2022 (24.13 per cent). 

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 coffee, tea and cocoa, NBS said in the data that was released yesterday.

Nigeria’s headline inflation rate increased to 28.20 percent in November relative to the October 2023 headline inflation rate which was 27.33 per cent.

The November 2023 inflation rate showed an increase of 0.87 percent points when compared to October 2023 headline inflation rate. On a year-on-year basis, the headline inflation rate was 6.73 percent points higher compared to the rate recorded in November 2022, which was 21.47 percent.

On a month-on-month basis, the food inflation rate in November 2023 was 2.42 percent which is 0.51percent higher compared to the rate recorded in October 2023 (1.91 percent). 

The rise in food inflation on a month-on-month basis was caused by the rise in the rate of increase in the average prices of bread and cereals, oil and fat, meat, coffee, tea and cocoa, potatoes, yam & other tubers, according to NBS.

The average annual rate of food inflation for the twelve-months ending November 2023 

over the previous twelve-month average was 27.09 percent, which was a 6.68 percent points increase from the average annual rate of change recorded in November 2022 (20.41 per cent).

On a year-on-year basis, in November 2023, the Urban inflation rate was 30.21 percent, this was 8.13 percent points higher compared to the 22.09 percent recorded in November 2022. On a month-on-month basis, the Urban inflation rate was 2.23 percent in November 2023, this was 0.41 percent points higher compared to October 2023 (1.81 per cent). 

The corresponding 12-month average for the urban inflation rate was 25.45 percent in November 2023. This was 6.56 percent points higher compared to the 18.90 percent reported in November 2022.

On a month-on-month basis, the headline inflation rate in November 2023 was 2.09 percent, which was 0.35 percent higher than the rate recorded in October 2023 (1.73 percent). 

This means that in November 2023, the rate of increase in the average price level is more than the rate of increase in the average price level in October 2023.

The statistics bureau said the rural inflation rate in November 2023 was 26.43 percent on a year-on-year basis. This was 5.55 percent points higher compared to the 20.88 percent recorded in November 2022. On a month-on-

month basis, the Rural inflation rate in November 2023 was 1.99 percent, up by 0.31 percent points compared to October 2023 (1.67 percent). 

The corresponding 12-month average for the Rural inflation rate in November 2023 was 22.71%. This was 4.83 percent points higher compared to the 17.88 percent recorded in November 2022.