Nigeria’s inflation rate has climbed to an alarming 34.6% in November 2024, marking a continued rise in living costs across the country.
This marks a 0.72% increase compared to the 33.8% inflation rate recorded in October 2024.
The data, released by the National Bureau of Statistics (NBS) on Monday, paints a grim picture of the ongoing economic challenges faced by Nigerians.
The NBS also provided a comparison with the previous year, noting that inflation stood at 28.92% in December 2023, reflecting a 0.72% rise from the 28.20% recorded in November 2023.
“This shows that the headline inflation rate increased year-on-year, as the economy continues to face persistent pressures,” the NBS said.
The report underscores the continuous upward trajectory of inflation, which has now surpassed 30% for several months.
This significant increase in inflation is a direct consequence of the rising prices of essential goods, worsened by supply chain disruptions, high food costs, and the depreciation of the naira.
On a year-on-year basis, inflation in December 2023 was 7.58% higher than the 21.34% recorded in December 2022, indicating a worsening economic situation.
“Looking at the movement, we can see that inflation has continued its upward climb over the last year, with the cost of living rising steadily,” the NBS stated.
Food inflation has been a key driver of the overall inflation rate, and the figures for November 2024 show a concerning jump.
Food inflation hit 39.93% in November 2024, up from 32.84% in the same month the previous year.
This sharp rise in food inflation is being driven by significant price increases in staple foods like yam, maize, rice, and oils.
“The rise in food inflation is largely caused by the price increases in items like yam, rice, maize, and various oils,” the NBS report explained.
These food price hikes have put immense pressure on Nigerian households, with many struggling to afford basic meals.
In November 2024, food inflation also saw a slight month-on-month increase, rising by 2.98%, up from 2.94% in October.
This increase was driven by higher prices for fish, rice, milk, and various meats, all of which have become more expensive in recent months.
“The rise is attributed to the increase in the prices of fish, rice, milk, and meats,” the NBS added, pointing to the challenges facing families trying to meet their nutritional needs.
Food inflation has also been rising on an annual basis, with the average food inflation rate for the year ending November 2024 hitting 38.67%, up from 27.09% during the same period last year.
Regionally, food inflation rates have varied significantly across Nigeria, with some states seeing much higher inflation than others.
Bauchi, Kebbi, and Anambra states recorded the highest food inflation rates, with Bauchi at 46.21%, Kebbi at 42.41%, and Anambra at 40.48%.
On the other hand, Delta, Benue, and Katsina recorded the lowest food inflation rates, with food inflation standing at 26.47%, 28.98%, and 29.57%, respectively.
“The variation in food inflation rates across states reflects regional disparities in supply, demand, and local economic conditions,” the NBS noted.
For example, food inflation in Yobe, Kebbi, and Anambra saw some of the highest month-on-month increases, with Yobe recording a 5.14% rise, followed closely by Kebbi at 5.10%, and Anambra at 4.88%.
Meanwhile, states like Adamawa, Osun, and Kogi saw the slowest increases, with food inflation rising by 0.95%, 1.12%, and 1.29%, respectively.
The surge in food prices is putting immense pressure on Nigeria’s population, particularly the lower and middle-income households who spend a large proportion of their income on food.
Many Nigerians have been forced to reduce their food consumption or switch to cheaper, less nutritious alternatives in order to cope with rising costs.
The impact of inflation is also being felt in other sectors of the economy, with goods and services becoming increasingly unaffordable for a large section of the population.
The Nigerian government continues to face criticism for its inability to tackle the root causes of inflation, including the weakening naira, supply chain disruptions, and the rising costs of basic commodities.
Experts have called for urgent government intervention to address these economic challenges, with some suggesting that the central bank should take stronger actions to stabilize the naira.
