Nigeria’s annual inflation rate surged to 27.33% in October from the 26.72% recorded in the previous month, according to the National Bureau of Statistics (NBS).
The year-on-year increase of 0.61% points adds to the economic challenges faced by Nigerians, particularly in the wake of escalating food prices.
The NBS report reveals that the food inflation rate has quickened to 31.52% on a year-on-year basis, reflecting a significant 7.80% points higher than the rate recorded in October 2022.
The surge in food prices has been exacerbated by government policies, including the removal of subsidies on petrol announced by President Bola Tinubu during his inauguration on May 29.
This policy shift has contributed to increased hardship for many Nigerians, impacting the prices of goods and services.
The depreciation of the naira by over 50% in recent months, coupled with the Central Bank of Nigeria’s decision to collapse forex windows into the Investors and Exporters window, has further complicated the economic landscape.
In response to the persistently high inflation, the Central Bank of Nigeria raised its benchmark lending rate to 18.75% in July, the highest level in nearly two decades.
While the government has taken steps, including declaring a State of Emergency on food insecurity, the battle against rising inflation persists.
The NBS report identifies the contributions of various sectors, with food and non-alcoholic beverages, housing, water, electricity, gas, and other fuel being significant contributors.
Despite a month-on-month decline in the headline inflation rate from September to October, the overall economic challenge remains, prompting stakeholders to strategize effectively to mitigate the impact on citizens.