Nigeria’s inflation hits 32.7% amid rising fuel costs

The urban inflation rate rose to 2.67% in September, while rural inflation also climbed to 2.39%, indicating that inflationary pressures are affecting both city dwellers and rural residents.

Nigeria’s inflation rate surged to 32.7% in September, marking a 0.55% rise from August’s 32.15%, according to the National Bureau of Statistics (NBS).

The inflation spike has been largely driven by escalating fuel costs and increased food prices.

The National Petroleum Corporation’s (NNPCL) recent hikes in petrol prices exerted substantial upward pressure on transport and commodity costs.

“Month-on-month, the inflation rate reached 2.52%, showing a more rapid increase compared to August’s 2.22%,” the NBS report detailed, underscoring the persistent price rises across essential goods and services.

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Food inflation remains a significant contributor to the inflationary trend, reaching 37.77% year-on-year. This represents a marked 7.13 percentage-point increase over the 30.64% rate observed in September 2023.

Notably, the inflation has led to dramatic price increases in certain everyday items, including vegetable oils, local and foreign beer, and widely consumed items like beef, Lipton, and Bournvita.

The food inflation rate also rose month-on-month to 2.64%, up from August’s 2.37%, as consumer costs rose sharply.

The core inflation rate, which excludes volatile agricultural and energy prices, also saw a significant jump, reaching 27.43% year-on-year, a 5.59 percentage point increase from September 2023’s 21.84%.

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“We observed the highest price increases in housing rents, intercity transport, and dining at local restaurants,” the NBS report noted, reflecting inflation’s wide-reaching impact on essential and discretionary spending.

The urban inflation rate rose to 2.67% in September, while rural inflation also climbed to 2.39%, indicating that inflationary pressures are affecting both city dwellers and rural residents.

Amid rising core inflation and widespread price hikes, Nigeria’s inflation trajectory underscores the need for targeted interventions to curb the impact on consumers, particularly in essential goods and services.