Rising fuel prices, foreign exchange shortages and food supply chain disruptions pushed inflation to a new record high of 21.09 percent in October, according to the Office for National Statistics.
This is 0.32 percent higher than the 20.77 percent reported in September. This means the cost of living is rising rapidly in Africa’s most populous nation.
The NBS said: “Factors that may be responsible for the increase in the annual inflation rate (year-on-year basis): disruption of food supply; the increase in the cost of imports due to the permanent depreciation of the currency; and the general increase in the cost of production, for example, the increase in the cost of energy”.
Although inflation has been rising from year to year, the statistical organization has revealed that in the last three months there has been a decrease in monthly inflation due to the decrease in the changes in the food index. He stated that it could be because the nation is currently in harvest season.
Speaking in the ‘Consumer Price Index October 2022’ report, the NBS said: “In October 2022, year-on-year, the inflation rate was 21.09 percent. This was 5.09 percentage points higher compared to the rate recorded in October 2021, which is 15.99.
“This shows that the overall price level of the inflation rate increased by 5.09 percent in October 2022 compared to the same month of the previous year (i.e. October 2021). Month-on-month, the inflation rate in October 2022 was 1.24%, the rate recorded in September 2022 0.11% lower than (1.36%) This means that in October 2022 the general price level of the inflation rate (monthly) decreased by 0.11%.
According to the NBS, the urban inflation rate rose to 21.63 percent, while rural inflation was now 20.57 percent.
He further revealed that the increase in prices of bread, cereals, potatoes, yams, other tubers, oil and ghee pushed food inflation to 23.72 percent in October.
Flood-hit Kogi is the worst hit, with inflation reaching 25.15 percent for the month.
The national statistics agency said: “In October 2022, the inflation rate for all items was the highest year-on-year rate in Kogi (25.15%), Bauchi (23.45%), Ondo (23.45%), and Plateau ( 23.45 percent).19.02 percent), Borno (19.31 percent) and Nasarawa (19.39 percent) recorded the slowest increase in the annual title.”
In October, fuel scarcity hit several parts of the country, with petrol stations selling petrol above the approved price of N180-N185/litre. This had an impact on the price of transport as public transport workers passed on this increase in cost to commuters.
