Nigeria’s inflation rate climbed to 33.88% in October 2024, marking a significant increase from 32.70% in September, as revealed by the latest Consumer Product Index report from the National Bureau of Statistics (NBS) on Friday. The rise represents a month-on-month increase of 1.18 percentage points, signaling ongoing economic challenges for the country.

On a year-on-year basis, the October 2024 inflation rate was 6.55 percentage points higher than the 27.33% recorded in October 2023, underscoring a sharp increase in consumer prices over the past year.

The report noted, “On a month-on-month basis, the headline inflation rate in October 2024 was 2.64%, which was 0.12 percentage points higher than the rate recorded in September 2024 (2.52%). This means that the average price level increased at a faster rate in October compared to September.”

Food Inflation Surges

Food inflation, a major driver of the headline rate, also saw a noticeable rise. On a month-on-month basis, the food inflation rate reached 2.94% in October, reflecting a 0.30 percentage point increase compared to September.

The price surge was attributed to higher costs of staple items, including palm oil, vegetable oil, fresh and dried fish, goat meat, bread, rice, and plantain flour. The report further highlighted that the average annual food inflation rate for the twelve months ending October 2024 stood at 38.12%, an increase of 11.79 percentage points compared to the same period last year.

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Persistent Economic Challenges

Nigeria’s inflation trajectory in 2024 has been shaped by multiple factors, including the removal of fuel subsidies, continued depreciation of the naira, insecurity, and flooding in agricultural regions. Analysts had earlier projected an inflation rate of 33.48% for October, slightly underestimating the eventual figure.

Fuel prices, which spiked from N980 to over N1,050 per litre in Lagos and higher in other regions, have had a cascading effect on transportation and food costs.

Seasonal harvests provided temporary relief during the middle of the year, with inflation dipping slightly after peaking at 34.19% in June, the highest rate in nearly three decades. However, September marked the beginning of another upward trend, driven by escalating energy and food prices.

Experts warn that inflation could exceed 35% by December 2024, with continued insecurity, rising farm input costs, and flooding likely to exacerbate the situation further.