Nigeria experienced a significant surge in inflation in November 2024, with the headline inflation rate reaching 34.60%, a 0.72 percentage point increase from October. This alarming figure, released by the National Bureau of Statistics (NBS), underscores the continued economic challenges facing the country.
The report revealed a concerning year-on-year increase, with November 2024’s inflation rate 6.40 percentage points higher than the 28.20% recorded in the same month of 2023. This persistent upward trend in inflation rates underscores the growing pressure on Nigerian consumers as the cost of living continues to climb.
Food inflation remains a primary driver of this economic crisis. In November 2024, food inflation reached 39.93%, a substantial increase from 32.84% in the same period of the previous year. Rising prices for essential staples like yam, rice, maize, and palm oil have significantly impacted household budgets.
Beyond food, core inflation, which excludes food and energy prices, also saw a significant increase, reaching 28.75% in November 2024. This indicates that inflationary pressures are not confined to the food sector but are widespread across various sectors of the economy, including transportation, housing, and personal services.
Regional disparities in inflation were also evident, with some states experiencing significantly higher inflation rates than others. Bauchi, Kebbi, and Anambra recorded the highest year-on-year inflation rates, while Delta, Benue, and Katsina recorded the lowest.
Despite the grim economic outlook, the Inflation Expectations Survey Report for November published by the Central Bank of Nigeria revealed that both businesses and households anticipate a gradual easing of inflation in the next six months. However, with the current rate significantly higher than the CBN’s target of 21.4%, these expectations may prove challenging to realize.
The CBN has taken steps to address inflation, including increasing the benchmark interest rate to 27.50%. However, the continued rise in inflation underscores the need for a comprehensive and multi-faceted approach to tackle this pressing economic challenge.
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