Nigeria’s inflation rate climbed to 34.6% in November 2024, marking the highest level in 26 years. This rise, as reported by the National Bureau of Statistics (NBS), reflects the persistent increase in the prices of goods and services nationwide.
The latest data reveals a 0.72% increase from October’s inflation rate of 33.88%. On a year-on-year basis, inflation surged by 6.4 percentage points compared to November 2023, when it stood at 28.2%.
Urban and Rural Inflation Trends
In urban areas, inflation reached 37.1% year-on-year, representing a rise of 6.88% compared to November 2023. On a month-to-month basis, urban inflation increased slightly by 0.02% to 2.77%.
Meanwhile, rural inflation stood at 32.27% year-on-year, a 5.84% rise from November 2023. However, on a month-on-month basis, rural inflation fell marginally to 2.51%, down by 0.02% compared to October 2024.
The twelve-month average inflation rate for urban areas was 35.07%, while rural areas recorded 30.71%, highlighting substantial increases compared to previous years.
Food Inflation Soars to 39.93%
Food inflation remains a major driver of the overall inflation surge. The food inflation rate increased to 39.93% in November 2024, up by 7.08% compared to 32.84% recorded in November 2023.
The rise in food prices is linked to significant hikes in the costs of staples such as yam, maize, potatoes, rice, palm oil, and vegetable oil. On a month-to-month basis, food inflation increased slightly to 2.98%, compared to 2.94% in October 2024.
Sokoto, Yobe, and Edo states recorded the highest year-on-year food inflation rates at 51.30%, 49.69%, and 47.77%, respectively. In contrast, Kwara, Kogi, and Rivers states experienced the lowest food inflation rates at 31.39%, 32.95%, and 33.27%.
Core Inflation Trends
Core inflation, which excludes the prices of food and energy, stood at 28.75% year-on-year in November 2024, reflecting a 6.36% increase from 22.38% in November 2023. This rise is attributed to higher costs in transportation, accommodation, and essential services.
On a month-to-month basis, core inflation declined to 1.83%, down by 0.3% from 2.14% recorded in October 2024.
Implications for Nigeria’s Economy
The sustained rise in inflation poses significant challenges for Nigerian households, businesses, and policymakers. Rising food prices, particularly in essential items, continue to exert pressure on the cost of living, especially as the festive season approaches.
Economists suggest that addressing structural issues such as agricultural productivity, transportation costs, and energy supply remains crucial for controlling inflation in the long term.
With food and core inflation at elevated levels, the coming months will likely remain challenging unless significant economic interventions are implemented.
