The National Bureau of Statistics (NBS) on Friday disclosed that Nigeria’s inflation rate increased to 28.02 percent in November 2023, reaching its highest peak since August 2005.
The last time the inflation rate in Nigeria reached 28.20 percent was in August 2005.
The bureau had reported a 27.33 percent inflation rate in October 2023 amid a scarcity of dollar and the federal government’s removal of subsidy on Premium Motor Spirit (PMS) or petrol.
The inflation rate in Nigeria was at 21.82 percent in January 2023 and moved to 21.91 percent, fueled by the scarcity of Naira, a policy introduced by the Central Bank of Nigeria (CBN).
NBS in its Consumer Price Index (CPI) report noted that the movement in the November 2023 headline inflation rate showed an increase of 0.87 percent points when compared to the October 2023 headline inflation rate.
According to NBS “On a year-on-year basis, the headline inflation rate was 6.73 percentage points higher compared to the rate recorded in November 2022, which was 21.47 percent. This shows that the headline inflation rate (year-on-year basis) increased in November 2023 when compared to the same month in the preceding year (i.e., November 2022).
“Furthermore, on a month-on-month basis, the headline inflation rate in November 2023 was 2.09 percent, which was 0.35 percent higher than the rate recorded in October 2023 (1.73 percent). This means that in November 2023, the rate of increase in the average price level is more than the rate of increase in the average price level in October 2023.”
The report disclosed that the percentage change in the average CPI for the 12 months ending November 2023 over the average of the CPI for the previous twelve-month period was 24.01 percent, showing a 5.64 percent increase compared to 18.37 percent recorded in November 2022.
On the urban inflation rate, the report disclosed that “On a year-on-year basis, in November 2023, the urban inflation rate was 30.21 percent, which was 8.13 percentage points higher compared to the 22.09 percent recorded in November 2022.
“On a month-on-month basis, the urban inflation rate was 2.23 percent in November 2023. This was 0.41 percentage points higher compared to October 2023 (1.81 percent). The corresponding twelve-month average for the urban inflation rate was 25.45 percent in November 2023. This was 6.56 percentage points higher compared to 18.90 percent reported in November 2022.”
The rural inflation rate in November 2023 was 26.43 percent on a year-on-year basis; this was 5.55 percentage points higher compared to the 20.88 percent recorded in November 2022.
“On a month-on-month basis, the rural inflation rate in November 2023 was 1.99 percent, up by 0.31 percentage points compared to October 2023 (1.67 percent).
“The corresponding twelve-month average for the rural inflation rate in November 2023 was 22.71 percent. This was 4.83 percentage points higher compared to the 17.88 percent recorded in November 2022,” the report on rural inflation rates disclosed.
The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, on Thursday said rising inflation and exchange rates will reduce drastically in 2024.
Cardoso, who also projected less revenue from oil exports next year, declared that the total trade from the Nigerian Foreign Exchange Market (NFEM) stood at N18.804 billion in the third quarter of 2023. He spoke when he appeared before the National Assembly Joint Committee on Banking, Insurance, and Other Financial Institutions for an interactive session. He explained to members of the joint committee from both chambers of the National Assembly that the outlook for the domestic economy in Nigeria for 2024 remains very positive as both inflation and exchange rates, would withstand fluctuating pressures on them and get stabilised.
He said: “The outlook for the domestic economy remains positive and is expected to maintain the positive trajectory for 2024. “Inflation pressures may persist in the short–term but are expected to decline in 2024. Exchange rate pressures are also expected to reduce significantly with the smooth functioning of the foreign exchange market.”
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