Abuja, Nigeria — According to the latest data from the National Bureau of Statistics (NBS), Nigeria’s inflation rate surged to 34.6% in November 2024, up from 33.88% in October. This marks a 0.72 percentage point increase, reaching the highest level in 28 years.
On a year-on-year basis, Nigeria’s headline inflation in November 2024 was 6.40 percentage points higher than the same period in 2023, which stood at 28.20%. The significant rise in the inflation rate from November 2023 to November 2024 underscores the ongoing inflationary pressures in the economy.
However, on a month-on-month basis, the headline inflation rate showed a slight decrease in November 2024, coming in at 2.638%. This was marginally lower than the 2.640% recorded in October 2024, suggesting a slight deceleration in the rate of price increases compared to the previous month.
Financial analysts had anticipated the inflation rate would climb further, with projections of 34.64% based on their market surveys and regression models. The expected rise was attributed to seasonal factors and persistent cost pressures, especially as prices continued to rise compared to the same period in 2023.
Food and Core Inflation Soar
The report also indicated that food inflation, a critical component of Nigeria’s overall inflation, was expected to increase, with projections for the food sub-index to rise to 40.02% in November. Key items driving food inflation included staples such as rice, eggs, vegetable oil, and sardines. The core inflation rate, which excludes food and energy prices, was also projected to rise to 29.38%.
Analysts from Financial Derivatives Company (FDC) emphasized that while monthly inflation is often a better gauge of the current price situation, the persistent high levels of core inflation suggest that inflation in Nigeria is more structural than transient. “Core inflation has remained sticky relative to headline and food inflation, signaling deeper, more persistent inflationary pressures,” said the FDC in a statement.
Economic Outlook
As inflation continues to climb, FDC analysts warned that unless monetary tightening policies are complemented by broader economic reforms, inflationary pressures could persist in the months ahead. The company also projected that monthly inflation could increase slightly to 2.67% (annualized at 37.25%), up from 2.64% in October.
As Nigerians face increasing prices, particularly with the festive season approaching, the outlook remains uncertain, with many households already grappling with the rising costs of living. The ongoing inflation crisis has sparked concerns over the purchasing power of the average Nigerian, especially as basic goods like rice and eggs become increasingly expensive.
With inflationary pressures showing no sign of abating, the government’s response will likely be a key factor in shaping Nigeria’s economic trajectory in the coming months.
