The removal of fuel subsidies in May, coupled with disruptions to the supply chain, has led to a notable escalation in food prices throughout Nigeria, significantly impacting headline inflation, according to the latest data from the National Bureau of Statistics (NBS).
As of November 2023, the year-on-year inflation rate soared to 32.84 percent, marking an increase of 8.72 percent points from the same period in 2022, which recorded a rate of 24.13 percent. The surge in food inflation was attributed to elevated prices of essential items such as bread, cereals, oil, fat, potatoes, yam, other tubers, fish, fruit, meat, vegetables, coffee, tea, and cocoa, as detailed in the recently released NBS data.
The headline inflation rate for November 2023 reached 28.20 percent, reflecting a 0.87 percent points rise from October 2023, where the rate was 27.33 percent. Compared to November 2022, the year-on-year headline inflation rate witnessed an increase of 6.73 percent points, rising from 21.47 percent to 28.20 percent.
On a month-on-month basis, the food inflation rate for November 2023 was 2.42 percent, indicating a 0.51 percent increase from October 2023, which recorded a rate of 1.91 percent. This upward trajectory in food inflation was primarily driven by higher average prices for bread and cereals, oil and fat, meat, coffee, tea, cocoa, potatoes, yam, and other tubers, according to NBS.
The twelve-month average for food inflation ending in November 2023 stood at 27.09 percent, reflecting a 6.68 percent points increase from the previous twelve-month average recorded in November 2022 (20.41 percent).
In November 2023, the urban inflation rate on a year-on-year basis reached 30.21 percent, witnessing an 8.13 percent points surge from the 22.09 percent reported in November 2022. On a month-on-month basis, the urban inflation rate for November 2023 was 2.23 percent, a 0.41 percent points increase from October 2023 (1.81 percent). The corresponding twelve-month average for urban inflation in November 2023 was 25.45 percent, marking a 6.56 percent points rise from the 18.90 percent reported in November 2022.
The headline inflation rate on a month-on-month basis for November 2023 was 2.09 percent, indicating a 0.35 percent increase from October 2023 (1.73 percent). This suggests a more rapid rise in the average price level in November 2023 compared to the preceding month.
For November 2023, the rural inflation rate on a year-on-year basis was 26.43 percent, reflecting a 5.55 percent points increase from the 20.88 percent reported in November 2022. On a month-on-month basis, the rural inflation rate for November 2023 was 1.99 percent, up by 0.31 percent points compared to October 2023 (1.67 percent). The corresponding twelve-month average for rural inflation in November 2023 stood at 22.71 percent, marking a 4.83 percent points increase from the 17.88 percent recorded in November 2022.
