Nigeria’s Inflation Rate Rises to 26.72% in September 2023- NBS

In its recently released Consumer Price Index (CPI) and Inflation Report for September, the National Bureau of Statistics (NBS) has revealed that Nigeria’s headline inflation rate escalated to 26.72% in September 2023. This marks a significant 0.92% increase compared to the 25.80% reported in August 2023.

The report attributes this surge to price increases across various sectors. Notably, food and non-alcoholic beverages spiked by 13.84%, and housing, water, electricity, gas, and other fuels rose by 4.47%. Clothing and footwear, transport, furnishings, household equipment, maintenance, education, health, and other categories also saw incremental increases, contributing to the overall inflation rate.

On a year-on-year basis, the headline inflation rate in September was 5.94% higher than the rate recorded in September 2022, at 20.77%.

Furthermore, the report highlights a 2.10% month-on-month increase in the headline inflation rate for September 2023, indicating a 1.08% decrease compared to August 2023. This means that in September 2023, the average price level decreased by 1.08% compared to the previous month.

The percentage change in the average CPI for the 12 months ending in September 2023 over the average of the previous 12-month period was 22.90%. This represents a 5.47% increase compared to the figure recorded in September 2022, signaling a persistent inflationary trend.

Food inflation also saw a substantial rise, reaching 30.64% on a year-on-year basis in September, which was 7.30% higher compared to September 2022. The increase in food inflation can be attributed to rising prices in several food categories.

The report notes a similar trend in core inflation, which excludes volatile agricultural produce and petroleum motor spirit. It stood at 21.84% on a year-on-year basis in September, a 4.35% increase compared to the previous year, primarily due to the deregulation of petroleum prices.

The report also analyzes urban and rural inflation rates, showing increases in both compared to September 2022. Urban inflation stood at 28.68%, while rural inflation reached 24.94%. On a month-on-month basis, both urban and rural inflation rates decreased slightly in September.

Additionally, the report provides insights into the inflation rates in various Nigerian states, with Kogi, Rivers, and Lagos experiencing the highest all-items inflation rates on a year-on-year basis, while Borno, Jigawa, and Benue reported the slowest increases. On a month-on-month basis, Taraba, Bauchi, and Niger saw the highest inflation, while Borno, Ekiti, and Benue reported the slowest rises.

Food inflation showed regional variations, with Kogi, Rivers, and Lagos experiencing the highest year-on-year increases and Akwa Ibom, Niger, and Ebonyi reporting the highest month-on-month increases. Conversely, Cross River, Borno, and Bayelsa had the slowest rises in month-on-month food inflation.

The report underscores the ongoing challenge of inflation in Nigeria, affecting the prices of essential goods and services across the country.