At 21.09% in October, Nigeria’s inflation rate hits 17-year high

As food crisis persists, Nigeria’s inflation rate increased to 21.09 per cent in October 2022, becoming 17-year high, according to the latest Consumer Price Index (CPI) report by the National Bureau of Statistics (NBS).

This was 5.09per cent points higher compared to the rate recorded in October 2021, which was 15.99per cent.

The bureau had reported 20.77 per cent inflation rate in September 2022.

The bureau in its CPI report on Tuesday said the increase is a reflection of the general price level for the headline inflation rate increase in October 2022 when compared to the same month in the preceding year (i.e., October 2021) by 5.09per cent.

The NBS attributed disruption in the supply of food products, increase in cost of importation due to the persistent currency depreciation and general increase in the cost of production e.g increase in energy cost as likely factors responsible for the increase in annual inflation rate.

The report by NBS said: “On a month-on-month basis, the headline inflation rate for October 2022 was 1.24per cent, this was 0.11 per cent lower than the rate recorded in September 2022 (1.36per cent). This means that in October 2022 the general price level for the headline inflation rate (month–on–month basis) declined by 0.11 per cent.

“The percentage change in the average CPI for the twelve months ending October 2022 over the average of the CPI for the previous twelve months period was 17.86per cent, showing a 0.91 per cent increase compared to the 16.96 per cent recorded in October 2021.”

On urban inflation rate, the report disclosed that on a year-on-year basis, in October 2022, the urban inflation rate was 21.63per cent, this was 5.11 per cent higher compared to the 16.52 per cent recorded in October 2021.

“On a month-on-month basis, the urban inflation rate was 1.33 per cent in October 2022, this was a 0.12 per cent decline compared to September 2022 (1.46 per cent). The corresponding twelve-month average for the urban inflation rate was 18.38 per cent in October 2022. This was 0.85 per cent higher compared to the 17.53 per cent reported in October 2021,” the report explained

In addition, the report explained that rural inflation rate in October 2022 was 20.57 per cent on a year-on-year basis. This was 5.09 per cent higher compared to the 15.48 per cent recorded in October 2021.

“On a month-on-month basis, the rural inflation rate in October 2022 was 1.16 per cent, which was down by 0.11 per cent compared to September 2022 (1.27 per cent). The corresponding twelve-month average for the rural inflation rate in October 2022 was 17.38 per cent.

“This was 0.98 per cent higher compared to the 16.39 per cent recorded in October 2021,” the report added.