Nigeria witnessed a surge in its headline inflation rate, marking a notable increase from the previous month. According to the latest data released by the nation bureau of Statistic , the headline inflation rate for October, 2023 rose to 27.33%, compared to September 2023’s rate of 26.72%. This reflects a 0.61% points increase in the headline inflation rate for October, highlighting the challenges in stabilizing the country’s inflationary pressures.
Analyzing the figures on a year-on-year basis, the October 2023 headline inflation rate soared by 6.24% points compared to the same period in 2022, which recorded a rate of 21.09%. This substantial year-on-year increase underscores the persistent inflationary trends affecting the country.
Examining the contributions of items at the divisional level to the surge in the Headline index, several sectors played significant roles. The Food & Non-Alcoholic Beverages division led with a contribution of 14.16%, followed by Housing, Water, Electricity, Gas & Other Fuel at 4.57%. Other contributors included Clothing & Footwear, Transport, Furnishings & Household Equipment & Maintenance, Education, Health, Miscellaneous Goods & Services, Restaurant & Hotels, Alcoholic Beverage, Tobacco & Kola, Recreation & Culture, and Communication.
However, on a month-on-month basis, there was a slight relief, as the headline inflation rate for October 2023 stood at 1.73%, marking a 0.37% decrease from the September 2023 rate of 2.10%. This indicates a moderation in the rate of price increase for the average consumer basket during October.
The percentage change in the average Consumer Price Index (CPI) for the twelve months ending October 2023 over the previous twelve-month period was 23.44%. This marks a 5.57% increase compared to the 17.86% recorded in October 2022, reflecting the ongoing challenges in managing inflationary pressures.
Breaking down the urban and rural inflation rates, the Urban inflation rate for October 2023 was 29.29% on a year-on-year basis, indicating a substantial 7.66% points increase from the 21.63% recorded in October 2022. On a month-on-month basis, the Urban inflation rate for October was 1.81%, representing a 0.43% points decrease from September 2023.
In rural areas, the inflation rate for October 2023 was 25.58% on a year-on-year basis, marking a 5.01% increase from the 20.57% recorded in October 2022. On a month-on-month basis, the Rural inflation rate slightly decreased to 1.67%, down by 0.29% points compared to September 2023.
The corresponding twelve-month averages for both Urban and Rural inflation rates indicated higher figures in October 2023 compared to the same period in 2022, showcasing the broader economic challenges facing both urban and rural communities.
As Nigeria grapples with inflationary pressures, policymakers are likely to face intensified efforts to manage and stabilize the economic landscape.