Nigeria’s inflation hits 32.70% in Sept, rising first time in three months

Nigeria’s inflation rate increased in September for the first time in three months, climbing to 32.70% year-on-year from 32.15% in August, according to data released by the National Bureau of Statistics (NBS) on Tuesday.

The NBS reported that in September 2024, the headline inflation rate was 32.70% compared to the August 2024 rate of 32.15%, reflecting an increase of 0.55%.

On a year-on-year basis, the rate was 5.98 percentage points higher than the 26.72% recorded in September 2023.

The month-on-month inflation rate also rose to 2.52%, up from 2.22% in August 2024.

The food inflation rate for September 2024 reached 37.77%, marking a 7.13 percentage point increase from the previous year’s rate of 30.64%. Key contributors to this rise included prices for guinea corn, rice, maize, beans, yams, cassava, beer, and various oils.

On a month-on-month basis, food inflation rose by 2.64% in September, an increase from the 2.37% recorded in August. The rise was attributed to price hikes in items such as beer, vegetable oil, beef, and dairy products.

The average annual rate of food inflation for the twelve months ending September 2024 was 37.53%, significantly higher than the 25.65% recorded in September 2023.

Analysts had anticipated that the inflation slowdown observed in July and August might be temporary, especially following three petrol price hikes since early September, which have further strained citizens facing a severe cost-of-living crisis.

The administration of President Bola Tinubu has implemented significant economic reforms, including the removal of a long-standing fuel subsidy and the devaluation of the naira.

While these measures aim to boost economic growth and strengthen public finances, they have also contributed to rising inflation, leading to five interest rate increases by the central bank this year.