BREAKING: Nigeria’s inflation rate hits 26.72% in Sept amid spike in cost of food

Amid a spike in the cost of foods due to increase in price of Premium Motor Spirit (PMS),the National Bureau of Statistics (NBS) on Monday disclosed that inflation rate in Nigeria increased to 26.72 per cent in September 2023 relative to August 2023 when it was 25.80per cent.

The report by NBS stated that the September 2023 headline inflation rate showed an increase of 0.92 per cent points when compared to the August 2023 headline inflation rate.

According to the report, on a year-on-year basis, the headline inflation rate was 5.94per cent points higher compared to the rate recorded in September 2022, which was 20.77per cent.

“This shows that the headline inflation rate (year-on-year basis) increased in September 2023 when compared to the same month in the preceding year (i.e., September 2022).

“Furthermore, on a month-on-month basis, the headline inflation rate in September 2023 was 2.10per cent, which was 1.08per cent lower than the rate recorded in August 2023 (3.18per cent).

“This means that in September 2023, the rate of increase in the average price level was less than the rate of increase in the average price level in August 2023.”

According to NBS report, the percentage change in the average CPI for the twelve-month period ending September 2023 over the average of the CPI for the previous twelve-month period was 22.90per cent, showing a 5.47 per cent increase compared to 17.43 per cent recorded in September 2022.

On urban inflation, the report disclosed that, “  On a year-on-year basis, in September 2023, the Urban inflation rate was 28.68per cent, this was 7.43per cent points 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 2023, this was 1.05 per cent points lower compared to August 2023 (3.29 per cent).

“The corresponding twelve-month average for the Urban inflation rate was 24.10 per cent in September 2023. This was 6.16 per cent points higher compared to the 17.94 per cent reported in September 2022.

According to NBS, rural inflation rate in September 2023 was 24.94per cent on a year-on-year basis; this was 4.62 per cent points higher compared to the 20.32 per cent recorded in September 2022.

“On a month-on-month basis, the Rural inflation rate in September 2023 was 1.96 per cent, down by 1.12 per cent points compared to August 2023 (3.08 per cent).

“The corresponding 12-month average for the Rural inflation rate in September 2023 was 21.79 per cent. This was 4.85 per cent higher compared to the 16.94 per cent recorded in September 2022,” the report added.

The bureau stated that food inflation rate in September 2023 was 30.64per cent on a year-on-year basis, which was 7.30 per cent points higher compared to the rate recorded in September 2022 (23.34per cent).

“The rise in Food inflation on a year-on-year basis was caused by increases in prices of Oil and fat, Bread and cereals, Potatoes, Yam and other Tubers, Fish, Fruit, Meat, Vegetables and Milk, Cheese, and Eggs.

“On a month-on-month basis, the Food inflation rate in September 2023 was 2.45 per cent, this was 1.41 per cent lower compared to the rate recorded in August 2023 (3.87 per cent).

“The decline in Food inflation on a Month-on-Month basis was caused by a fall in the rate of increase in the average prices of Potatoes, Yam and other tubers, Bread and cereals, Fruits, and Fish.

“The average annual rate of Food inflation for the twelve months ending September 2023 over the previous twelve-month average was 25.65 per cent, which was 6.29 per cent points increase from the average annual rate of change recorded in September 2022 (19.36 per cent),” the report on food inflation disclosed.