Nigeria’s inflation hits 21.09% in October, a 17-year high

Nigeria’s inflation rate jumped to a 17-year high of 21.09% in October 2022, representing a 0.32% point increase from 20.77% recorded last month.

This is coming as food inflation in October 2022 increased to 23.72% from 18.34% in the corresponding Month last year.

The National Bureau of Statistics, NBS, Consumer Price Index, CPI report revealed this on Monday.

According to the report, food inflation also sharply rose to 23.72% in the Month under review from 23.34% in the prior Month, while the core inflation rate jumped to 17.76% from 17.6% recorded in September 2022.

“In October 2022, on a year–on–year basis, the headline inflation rate was 21.09%. This was 5.09% points higher compared to the rate recorded in October 2021, which was 15.99%. This shows that the general price level for the headline inflation rate increased in October 2022 compared to the same Month in the preceding year (i.e., October 2021) by 5.09%.

“On a month-on-month basis, the Headline inflation rate for October 2022 was 1.24%, this was 0.11% lower than the rate recorded in September 2022 (1.36%). This means that in October 2022 the general price level for the headline inflation rate (Month–on–month basis) declined by 0.11%.

“The percentage change in the average CPI for the twelve months ending October 2022 over the average for the previous twelve months period was 17.86%, showing a 0.91% increase compared to the 16.96% recorded in October 2021,” the report said.

According to NBS the likely factors for the increase on a year-on-year basis are: Disruption in the supply of food products, increase in the cost of importation due to the persistent currency depreciation and A general rise in the price of production e.g increase in energy cost.

Also, NBS stated that in October 2022, the inflation rate on all items on a year-on-year basis was highest in Kogi (25.15%), Bauchi (23.45%), Ondo (23.45%), while Plateau (19.02%), Borno (19.31%) and Nasarawa (19.39%) scored the slowest rise in headline Year-on-Year inflation.

On a month-on-month basis, however, October 2022 recorded the highest increases in Abuja (3.18%), Kebbi (2.80%), Sokoto (2.57%), while Kwara (-0.14%), Kogi (0.06%) and Oyo (0.30%) recorded the slowest rise on month-on-month inflation.

Food Inflation

The food inflation rate in October 2022 was 23.72% on a year-on-year basis; which was 5.39% higher than the rate recorded in October 2021 (18.34%).

NBS attributed the rise in food inflation to an increase in the price of cereals and bread, potatoes, yams, and other food items.

In October month-on-Month basis food inflation stood at 1.23%, a 0.21% decline compared to the rate recorded in September 2022 (1.43%). This decline was attributed to decreased prices of selected food such as beans, tubers, palm oil and vegetables.