Nigeria’s Inflation Climbs to 34.60% in November
…Driven by Soaring Food Prices
By Patience Ikpeme
Nigeria’s headline inflation rate continued its upward trajectory in November 2024, reaching 34.60 percent, according to the latest data released by the National Bureau of Statistics (NBS) on Monday.
This represents a 0.72 percentage point increase compared to the 33.88 percent recorded in October 2024. The relentless rise in food prices remains the primary driver of this inflationary pressure.
The NBS report highlighted a significant surge in the food component of inflation, reaching 39.93 percent year-on-year. This marks a substantial 7.08 percentage point increase compared to the 32.84 percent recorded in November 2023. This persistent rise in food inflation is attributed to price increases across a range of staple food items. Specifically, the NBS pointed to increases in the prices of yam, water yam, cocoyam (within the potatoes, yam, and other tubers class), guinea corn, maize grains, rice (within the bread and cereal class), beer, pinto (tobacco class), and palm oil and vegetable oil (within the oil and fats class).
On a month-on-month basis, food inflation in November 2024 stood at 2.98 percent, a slight 0.05 percentage point increase from the 2.94 percent recorded in October 2024. This marginal increase was influenced by rising prices of mudfish, dried catfish, dried sardine (fish class), rice, yam flour, millet whole grain, corn flour (bread and cereal class), agric eggs, powdered milk, fresh milk (milk, cheese, and eggs class), and dried beef, goat meat, and frozen chicken (meat class). The average annual rate of food inflation for the twelve months ending November 2024, compared to the previous twelve-month average, was 38.67 percent. This represents a substantial 11.58 percentage point increase compared to the 27.09 percent recorded in November 2023.
Looking at the broader picture, the year-on-year headline inflation rate was 6.40 percentage points higher than the 28.20 percent recorded in November 2023, indicating a clear acceleration in the rate of price increases compared to the same period last year. However, on a month-on-month basis, the headline inflation rate in November 2024 was 2.638 percent, marginally lower (by 0.002 percentage points) than the 2.640 percent recorded in October 2024. The NBS explained that this slight decrease suggests a marginally slower rate of increase in the average price level in November compared to October.
Inflationary pressures varied significantly across different states. On a year-on-year basis, Bauchi (46.21%), Kebbi (42.41%), and Anambra (40.48%) experienced the highest inflation rates, while Delta (27.47%), Benue (28.98%), and Katsina (29.57%) recorded the lowest. On a month-on-month basis, Yobe (5.14%), Kebbi (5.10%), and Kano (4.88%) had the highest inflation rates, while Adamawa (0.95%), Osun (1.12%), and Kogi (1.29%) recorded the slowest rise.
Food inflation also varied across states. On a year-on-year basis, Sokoto (51.30%), Yobe (49.69%), and Edo (47.77%) experienced the highest food inflation, while Kwara (31.39%), Kogi (32.95%), and Rivers (33.27%) recorded the lowest. On a month-on-month basis, Yobe (6.52%), Kano (5.95%), and Kebbi (5.68%) had the highest food inflation, while Borno (0.76%), Adamawa (0.90%), and Kogi (1.21%) recorded the slowest rise.
The latest inflation figures paint a concerning picture of persistent inflationary pressures in Nigeria, driven primarily by escalating food prices. The regional variations highlight the need for targeted interventions to address the specific challenges faced by different states.
