Inflation Rises First Time in Three Months to 32.7% in September 2024

Nigeria’s inflation rate rose in September 2024 for the first time in three months, advancing to 32.70 percent in annual terms from 32.15 percent in August.

Looking at the movement, the September 2024 inflation rate showed an increase of 0.55 percent compared to the August 2024 inflation rate.

Inflation had eased in July and August, but a return could potentially mean Nigerians will have to tighten their belts, analysts told Investors King.

On a year-on-year basis, the Headline inflation rate was 5.98 percent points higher compared to the rate recorded in September 2023 (26.72 percent).

This shows that the Headline inflation rate (year-on year basis) increased in September 2024 when compared to the same month in the preceding year (i.e., September 2023).

Furthermore, on a month-on-month basis, the Headline inflation rate in September 2024 was 2.52 percent, which was 0.30 percent higher than the rate recorded in August 2024 (2.22 percent).

This means that in September 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in August 2024.

The food inflation rate in September 2024 was 37.77 percent on a year-on-year basis, 7.13 percent points higher than the rate recorded in September 2023 (30.64 percent).

The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following items such as guinea corn, rice, maize grains, beans, etc (bread and cereals class), yam, water yam, and cassava tuber, etc (potatoes, yam & other tubers class).

Others include beer (local and foreign) (tobacco class), lipton, Milo, Bournvita, etc (coffee, tea & cocoa class) and vegetable oil, palm oil, etc (oil & fats class).

On a month-on-month basis, the Food inflation rate in September 2024 was 2.64 percent which shows a 0.27 percent increase compared to the rate recorded in August 2024 (2.37 percent).

The average annual rate of Food inflation for the twelve months ending September 2024 over the previous twelve-month average was 37.53 percent which was 11.88 percent points increase from the average annual rate of change recorded in September 2023 (25.65 percent).