The latest Consumer Price Index (CPI) report from the National Bureau of Statistics (NBS) has revealed that Nigeria’s inflation rate reached 32.70 percent in September 2024, marking a slight increase from the 32.15 percent recorded in August 2024.
This 0.55 percent month-on-month rise underlines persistent inflationary pressures in the country, fueled largely by transportation and food prices.
One of the primary drivers behind the inflation surge was the increase in petrol prices initiated by the Nigerian National Petroleum Company Limited (NNPCL) at the beginning of September. The higher fuel costs reverberated across the economy, significantly impacting the cost of goods and services, especially in transportation.
On a year-on-year basis, the inflation rate rose by 5.98 percentage points compared to the 26.72 percent reported in September 2023. This sharp increase highlights the growing challenges Nigerians face in managing rising living expenses over the past year.
In September 2024, the month-on-month inflation rate stood at 2.52 percent, up from 2.22 percent in August 2024. This indicates that prices climbed at a faster pace in September compared to the previous month.
The report also pointed to food inflation as a significant contributor to the overall increase in inflation. The food inflation rate jumped to 37.77 percent year-on-year in September 2024, an increase of 7.13 percentage points from the 30.64 percent recorded in the same month last year.
On a month-on-month basis, food inflation increased by 0.27 percent, moving from 2.37 percent in August to 2.64 percent in September 2024. This rise was largely attributed to the cost of essential items, including local and foreign beer, various vegetable oils, beef, dried beef, and other commonly consumed products like Lipton, Milo, and Bournvita.
The average annual food inflation rate for the twelve months ending in September 2024 reached 37.53 percent, reflecting a significant 11.88 percentage point increase compared to the 25.65 percent recorded in September 2023.
Core inflation, which excludes volatile agricultural products and energy prices, stood at 27.43 percent year-on-year in September 2024, up from 21.84 percent in September 2023. On a month-on-month basis, however, core inflation slowed slightly to 2.10 percent in September, down from 2.27 percent in August.
Key items that contributed to core inflation include housing rent, intercity bus fares, taxi fares, and meals at local restaurants.
In urban areas, inflation continued to rise, with the urban inflation rate increasing to 2.67 percent in September, compared to 2.39 percent in August 2024. Rural inflation also climbed, reaching 2.39 percent in September, up from 2.06 percent in the previous month.
