Nigeria’s inflation rate hits 26.72% in September – NBS

The National Bureau of Statistics (NBS) says Nigeria’s headline inflation rate increased to 26.72 per cent in September 2023.

The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for September, released in Abuja on Monday.

According to the report, the figure, which is 0.92 per cent points higher compared to the 25.80 per cent recorded in August 2023.

It said on a year-on-year basis, the headline inflation rate in September was 5.94 per cent higher than the rate recorded in September 2022 at 20.77 per cent.

The report said the increase in the headline index for September 2023 was attributed to the increase in some items in the basket of goods and services at the divisional level.

It said these increases were observed in food and non-alcoholic beverages at 13.84 per cent and housing, water, electricity, gas, and other fuel at 4.47 per cent.

Others were clothing and footwear at 2.04 per cent; transport at 1.74 per cent; furnishings, household equipment and maintenance at 1.34 per cent, education at 1.05 per cent, and health at 0.80 per cent.

“Miscellaneous goods and services at 0.44 per cent; restaurant and hotels at 0.32 per cent; alcoholic beverage, tobacco and kola at 0.29 per cent; recreation and culture at 0.18 per cent, and communication at 0.18 per cent.”

In addition, the report said, on a month-on-month basis, the headline inflation rate in September 2023 was 2.10 per cent, which was 1.08 per cent lower than the rate recorded in August 2023 at 3.18 per cent.

“This means that in September 2023, the average price level decreased by 1.08 per cent compared to August 2023.”

It said the percentage change in the average CPI for the 12 months ending September 2023 over the average of the CPI for the previous corresponding 12-month period was 22.90 per cent.

“This indicates a 5.47 per cent increase compared to 17.43 per cent recorded in September 2022.”

The report said the food inflation rate in September increased to 30.64 per cent on a year-on-year basis, which was 7.30 per cent higher compared to the rate recorded in September 2022 at 23.34 per cent.

“The rise in food inflation is caused by increases in prices of oil and fats, bread and cereals, fish, potatoes, yams and other tubers, fruits, meat, vegetable, milk, cheese and eggs.”

It said on a month-on-month basis, the food inflation rate in September was 2.45 per cent, which was a 1.41 per cent drop compared to the rate recorded in August 2023 at 3.87 per cent.

“The decline in food inflation on a month-on-month basis was caused by a decrease in the average prices of bread and cereals, potatoes, yam and other tubers, bread, and fruits and fish.”

The report said the “All items less farm produce’’ or core inflation, which excludes the prices of volatile agricultural produce and petroleum motor spirit stood at 21.84 per cent in September on a year-on-year basis.

“This increased by 4.35 per cent compared to 17. 49per cent recorded in September 2022.”

“The exclusion of the PMS is due to the deregulation of the commodity by removal of subsidy.”

It said the highest increases were recorded in prices of passenger transport by air and road, medical services, maintenance, and repair of personal transport equipment, etc.

The NBS said on a month-on-month basis, the core inflation rate was 2.22 per cent in September 2023.

“This indicates a 0.05 per cent rise compared to what was recorded in August 2023 at 2.18 per cent.”

“The average 12-month annual inflation rate was 19.55 per cent for the 12 months ending September 2023, this was 4.48 per cent points higher than the 15.07 per cent recorded in September 2022.”

The report said on a year-on-year basis in September, the urban inflation rate was 28.68 per cent, which was 7.43 per cent higher compared to the 21.25 per cent recorded in September 2022.

“On a month-on-month basis, the urban inflation rate was 2.24 per cent in September representing a 1.05 per cent decline compared to August 2023 at 3.29 per cent.’’

The report said on a year-on-year basis in September, the rural inflation rate was 24.94 per cent, which was 4.62 per cent higher compared to the 20.32 per cent recorded in September 2022.

“On a month-on-month basis, the rural inflation rate was 1.96 per cent, which decreased by 1.12 per cent compared to August 2023 at 3.08 per cent.”

On states’ profile analysis, the report showed in September, all items inflation rate on a year-on-year basis was highest in Kogi at 32.95 per cent, followed by Rivers at 30.63 per cent, and Lagos at 30.04 per cent.

It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Borno at 21.05 per cent, followed by Jigawa at 22.39 per cent, and Benue at 23.22 per cent.

The report, however, said in September 2023, all items inflation rate on a month-on-month basis was highest in Taraba at 3.39 per cent, Bauchi at 3.38 per cent, and Niger at 3.28 per cent.

“Borno at 0.71 per cent, followed by Ekiti at 1.05 per cent and Benue at 1.13 per cent recorded the slowest rise in month-on-month inflation.”

The report said on a year-on-year basis, food inflation was highest in Kogi at 39.37 per cent, followed by Rivers at 35.95 per cent and Lagos at 35.66 per cent.

“Jigawa at 23.41 per cent, followed by Borno at 25.29 per cent and Sokoto at 25.38 per cent recorded the slowest rise in food inflation on a year-on-year basis.”

The report, however, said on a month-on-month basis, food inflation was highest in Akwa Ibom at 4.23 per cent, followed by Niger at 4.19 per cent and Ebonyi at 3.74 per cent.

“With Cross River at 0.31 per cent, followed by Borno at 0.62 per cent and Bayelsa at 0.73per cent recorded the slowest rise on month-on-month food inflation.”