Inflation Rate Surge
The National Bureau of Statistics (NBS) revealed that Nigeria’s headline inflation rate escalated to 34.60% in November 2024, marking an increase from 33.88% in October. This represents a month-on-month increase of 0.72% points as per the latest Consumer Price Index (CPI) report.
Annual Comparison
On a year-on-year basis, inflation in November 2024 was 6.40 percentage points higher than the 28.20% recorded in November 2023, indicating a significant rise in the cost of living over the past year.
Food Inflation Soars
Food inflation specifically jumped to 39.93% in November 2024, a 7.08% increase from November 2023. Month-to-month, food inflation rose by 0.05% from October’s 2.94% to November’s 2.98%. This spike is largely due to increased prices of essential food items like mudfish, catfish, dried fish, rice, yam flour, and various meats and dairy products.
Economic Context
Nigeria is currently grappling with its most severe cost of living crisis in over six decades. The sharp rise in inflation has been attributed to policy changes like the removal of energy subsidies and the floating of the naira, actions recommended by international financial institutions like the World Bank and the IMF to combat economic stagnation.
Impact of Policy Changes
Since President Bola Tinubu’s administration began in May 2023, the removal of petrol subsidies has led to a quadrupling of fuel prices from less than N200 per litre to over N1,100. Similarly, the naira’s value against the dollar has depreciated dramatically from around N700/$ to N1,600, exacerbating inflationary pressures across the nation.
