Nigeria’s inflation rate increased to 26.72 percent in September 2023, recording another record high since 2005 when it peaked at 28.2 percent.
The National Bureau of Statistics (NBS) on Monday revealed that the inflation rate in Nigeria increased to 26.72 percent in September 2023 relative to August 2023 when it was 25.80 percent.
The reported 26.72 percent inflation rate in September is the highest this year amid a spike in food inflation caused by a federal government hike in the price of Premium Motor Spirit (PMS).
The report by NBS stated that the September 2023 headline inflation rate showed an increase of 0.92 percent points compared to the August 2023 headline inflation rate.
According to the report, on a year-on-year basis, the headline inflation rate was 5.94 percent points higher compared to the rate recorded in September 2022, which was 20.77 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 2.10 percent, which was 1.08 percent lower than the rate recorded in August 2023 (3.18 percent).
“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 the NBS report, the percentage change in the average CPI for the twelve months ended September 2023 over the average of the CPI for the previous twelve-month period was 22.90 percent, showing a 5.47 percent increase compared to 17.43 percent recorded in September 2022.
The bureau stated that the food inflation rate in September 2023 was 30.64 cents on a year-on-year basis, which was 7.30 percent points higher compared to the rate recorded in September 2022 (23.34 cents).
“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 percent, this was 1.41 percent lower compared to the rate recorded in August 2023 (3.87 percent).
“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 ended September 2023 over the previous twelve-month average was 25.65 per cent, which was a 6.29 percent point increase from the average annual rate of change recorded in September 2022 (19.36 per cent),” the report on food inflation disclosed.
On urban inflation, the report disclosed that “ On a year-on-year basis, in September 2023, the urban inflation rate was 28.68 cents, this was 7.43 cent points higher compared to the 21.25 percent recorded in September 2022.
“On a month-on-month basis, the Urban inflation rate was 2.24 percent in September 2023, this was 1.05 percent points lower compared to August 2023 (3.29 percent).
“The corresponding twelve-month average for the urban inflation rate was 24.10 percent in September 2023. This was 6.16 percent points higher than the 17.94 percent reported in September 2022.
According to NBS, the rural inflation rate in September 2023 was 24.94 percent on a year-on-year basis; this was 4.62 percent points higher compared to the 20.32 percent recorded in September 2022.
“On a month-on-month basis, the Rural inflation rate in September 2023 was 1.96 percent, down by 1.12 percent points compared to August 2023 (3.08 percent).
“The corresponding 12-month average for the rural inflation rate in September 2023 was 21.79 percent. This was 4.85 percent higher compared to the 16.94 percent recorded in September 2022,” the report added.
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