Nigeria: ‘General’ inflation hits 17-year high, food inflation now 23.72 per cent

Nigeria’s inflation rate jumped to a 17-year high of 21.09% in October 2022, representing a 0.32% point increase from 20.77% recorded last month, National Bureau of Statistics’ (NBS) Consumer Price Index (CPI) report show.

This is coming as food inflation in October 2022 increased to 23.72% from 18.34% in the corresponding Month last year.

According to the report, food inflation also sharply rose to 23.72% in the Month under review from 23.34% in the prior Month, while the core inflation rate jumped to 17.76% from 17.6% recorded in September 2022.

“In October 2022, on a year–on–year basis, the headline inflation rate was 21.09%. This was 5.09% points higher compared to the rate recorded in October 2021, which was 15.99%. This shows that the general price level for the headline inflation rate increased in October 2022 compared to the same Month in the preceding year (i.e., October 2021) by 5.09%.

“On a month-on-month basis, the Headline inflation rate for October 2022 was 1.24%, this was 0.11% lower than the rate recorded in September 2022 (1.36%). This means that in October 2022 the general price level for the headline inflation rate (Month–on–month basis) declined by 0.11%.

“The percentage change in the average CPI for the twelve months ending October 2022 over the average for the previous twelve months period was 17.86%, showing a 0.91% increase compared to the 16.96% recorded in October 2021,” the report said.

According to NBS the likely factors for the increase on a year-on-year basis are: Disruption in the supply of food products, increase in the cost of importation due to the persistent currency depreciation and A general rise in the price of production e.g increase in energy cost.

Also, NBS stated that in October 2022, the inflation rate on all items on a year-on-year basis was highest in Kogi (25.15%), Bauchi (23.45%), Ondo (23.45%), while Plateau (19.02%), Borno (19.31%) and Nasarawa (19.39%) scored the slowest rise in headline Year-on-Year inflation.

On a month-on-month basis, however, October 2022 recorded the highest increases in Abuja (3.18%), Kebbi (2.80%), Sokoto (2.57%), while Kwara (-0.14%), Kogi (0.06%) and Oyo (0.30%) recorded the slowest rise on month-on-month inflation.

The food inflation rate in October 2022 was 23.72% on a year-on-year basis; which was 5.39% higher than the rate recorded in October 2021 (18.34%).

NBS attributed the rise in food inflation to an increase in the price of cereals and bread, potatoes, yams, and other food items.

In October month-on-Month basis food inflation stood at 1.23%, a 0.21% decline compared to the rate recorded in September 2022 (1.43%). This decline was attributed to decreased prices of selected food such as beans, tubers, palm oil and vegetables.