Nigeria’s headline inflation rate increased to 27.33% in October, marking an increase from the September 2023 rate of 26.72%.
The October 2023 headline inflation rate represents a 0.61 % point increase compared to the figure for the previous month of September.
Additionally, on a year-on-year basis, the headline inflation rate was 6.24% points higher than the rate recorded in October 2022, which stood at 21.09%.
- This indicates a growth in the headline inflation rate (year-on-year basis) in October 2023 compared to the corresponding month of 2022.
- On a monthly basis, the rate of increase in inflation dropped by 0.37% when compared to that of September.
The month-on-month inflation stood at 1.73% which was lower when compared to the figure for September 2023 which was 2.10%.
Food inflation
Food continues to be the major driver of inflation as food inflation rose to 1.52% on a year-on-year basis.
- This represents 7.80% points increase to the rate recorded in October 2022 (23.72%).
- The surge in year-on-year Food inflation was driven by price increases in various categories, including Bread and cereals, Oil and fat, Potatoes, Yam and other Tubers, Fish, Fruit, Meat, Vegetables, Milk, Cheese, and Eggs.
- On a month-on-month basis, the Food inflation rate in October 2023 stood at 1.91%, which is 0.54% lower than the rate recorded in September 2023 (2.45%).
- On a YoY basis, food inflation rose 31.5% compared to 30.6% reported for September.
This decline in month-over-month Food inflation can be attributed to a reduction in the rate of increase in the average prices of Fruits, Oil and fat, Coffee, Tea and Cocoa, Bread, and Cereals.
Core inflation
Core inflation, excluding the prices of volatile agricultural products and energy, reached 22.58% in October 2023 on a year-on-year basis.
- This compares to 21.8% a month earlier.
- This reflects a 5.12% increase compared to the 17.46% recorded in October 2022.
- The highest increases were observed in the prices of passenger transport by road, medical services, passenger transport by air, actual and imputed rentals for housing, and pharmaceutical products, among others.
On a month-on-month basis, the Core Inflation rate for October 2023 was 1.39%, showing a decrease of 0.83% from the September 2023 rate of 2.22%.
Urban inflation
In October 2023, the Urban inflation rate on a year-on-year basis was 29.29%, marking a significant increase of 7.66% points compared to the 21.63% recorded in October 2022.
- On a month-on-month basis, the Urban inflation rate for October 2023 stood at 1.81%, reflecting a 0.43% decrease from September 2023 (2.24%).
Rural inflation
In October 2023, the year-on-year Rural inflation rate reached 25.58%, marking a substantial increase of 5.01% compared to the 20.57% recorded in October 2022.
- On a month-on-month basis, the Rural inflation rate for October 2023 stood at 1.67%, indicating a decrease of 0.29% points compared to September 2023 (1.96%).
States with the highest and lowest food inflation
Food inflation by state revealed that Kogi state had the highest food prices with a food inflation rate at 41. 74%), followed by Kwara (38.48%) and Lagos (37.37%).
- On the other hand, Borno (24.41%), Kebbi (24.90%), and Jigawa (25.10%) recorded the slowest rise in food inflation on a Year-on-Year basis.
The causes of inflation in most parts of Nigeria is as a result of increase in Dollar as compare to Naira. Food inflation is caused mostly by insecurities and lack of infrastructures. A journey that is supposed to be less than 18 hours will take up to 108 hours to embark because of bad road. Most of the food comes from the Northern part of Nigeria and instead of spending 8 to 12 hours before coming to the South: it will take days and those perishable food like tomatoes, onions etc have shelf life. So in most cases the items get spoilt before they get to their destination.
All the federal roads in the South are in bad condition. Some times you see loaded lorries and vehicles capsized and gets stuck in the road.
Our farmers most especially the female genders are raped and kidnapped. These in turns leads to low production in supply of food as compare to demand.
I recommend that the Federal government should go back the days of rural infrastructural development programme ie the directorate of food, roads and rural infrastructure (DFRRI) and the agency ie as Federal Roads Maintenance Agency (FERMA) .
And these, Agencies should be monitored for corrupt practices
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