Nigeria’s inflation rate climbed to a record high of 27.33% in October 2023, signalling a worrisome trend for the economy. This represents a significant increase of 0.61% points compared to the previous month’s rate and a staggering 6.24% points higher than the rate recorded in October 2022.
The rise in inflation was primarily driven by increases in various sectors, including food and non-alcoholic beverages, housing, clothing, transportation, and healthcare. These price hikes have put a strain on the average Nigerian’s ability to afford basic goods and services.
On a month-to-month basis, the inflation rate slowed down slightly to 1.73% in October 2023, indicating a marginal decrease compared to the preceding month. However, the overall upward trajectory of inflation remains a concern for policymakers and citizens alike.
The food inflation rate also surged to 31.52% on a year-on-year basis in October 2023, driven by increases in prices of bread, cereals, oil, fat, potatoes, yam, fish, fruit, meat, vegetables, and dairy products. Although there was a slight decrease in food inflation on a month-on-month basis, the overall trend remains worrisome.
Furthermore, the core inflation rate, which excludes volatile farm produce and energy prices, stood at 22.58% in October 2023 on a year-on-year basis. This marks a substantial increase compared to the same period in the previous year.
Both urban and rural areas experienced significant inflationary pressures. Urban inflation reached 29.29% on a year-on-year basis, while rural inflation stood at 25.58%. These high inflation rates pose challenges for Nigerians across all regions.
The Nigerian government and monetary authorities have been grappling with the issue of rising inflation and its impact on the economy. Efforts to address the situation may involve implementing policies to stabilise prices, improve agricultural productivity, and enhance overall economic resilience.
The current inflationary pressures are likely to have far-reaching consequences, affecting the cost of living, business operations, and investment decisions. It remains crucial for stakeholders to monitor the situation closely and take appropriate measures to mitigate the impact of inflation on the Nigerian population.
