Nigeria’s inflation rate rises to 21.09% amid soaring food prices

The consumer price index (CPI), which measures the rate of change in prices of goods and services, surged to 21.09 percent in October 2022, up from 20.77 percent in the previous month.

The development shows that the general price level for the headline inflation rate increased in October 2022 when compared to the same month in the preceding year (October 2021) by 5.09 percent.

The National Bureau of Statistics (NBS) said this on Tuesday in its consumer price index (CPI) report for October 2022.

‘On a month-on-month basis, the headline inflation rate for October 2022 was 1.24 percent, this was 0.11 percent lower than the rate recorded in September 2022 (1.36 percent). This means that in October 2022 the general price level for the headline inflation rate (month–on–month basis) declined by 0.11 percent,” the report reads.

“The percentage change in the average CPI for the twelve months ending October 2022 over the average of the CPI for the previous twelve months period was 17.86 percent, showing a 0.91 percent increase compared to the 16.96 percent recorded in October 2021.”

The report listed disruption in the supply of food products, cost of importation due to the persistent currency depreciation and high energy cost as reasons for the surge in the inflation rate.

“On a year-on-year basis, in October 2022, the urban inflation rate was 21.63 percent, 5.11 percent higher compared to the 16.52 percent recorded in October 2021. On a month-on-month basis, the urban inflation rate was 1.33 percent in October 2022, this was a 0.12 percent decline compared to September 2022 (1.46%).

“The corresponding twelve-month average for the urban inflation rate was 18.38% in October 2022. This was 0.85% higher compared to the 17.53% reported in October 2021.”

FOOD INFLATION HITS 23.72 PERCENT

The food inflation rate in October 2022 rose to 23.72 percent on annual basis. The figure was 5.39 percent higher compared to the rate recorded in October 2021 (18.34 percent).

The report added that the rise in food inflation was caused by increases in prices of bread and cereals, food products, potatoes, yams and other tubers, oil and fat.

“On a month-on-month basis, the food inflation rate in October was 1.23%, this was a 0.21 percent decline compared to the rate recorded in September 2022 (1.43 percent). This decline was attributed to the reduction in prices of some food items like tubers, palm oil, maize, beans, and vegetables.

“The average annual rate of food inflation for the twelve months ending October 2022 was 19.83 percent, which was a 0.92 percent points decline from the average annual rate of change recorded in October 2021 (20.75 percent).”