Food prices push Nigeria’s inflation rate to 26.72% in September

Nigeria’s inflation rate reaches 26.72% in September 2023, amid soaring food prices and harsh economic realities.

Data from the National Bureau of Statistics (NBS) Consumer Price Index puts Nigeria’s headline inflation at 26.72% for the month of September 2023. The latest numbers from the NBS represent a continuing uptrend in Africa’s largest economy’s inflation rate. Nigeria’s headline inflation for September increased by 0.92% points when compared to the August 2023 headline inflation rate of 25.80%. Nigeria’s inflation rate also increased on a year-on-year basis.

Inflation figures recorded for September this year were 5.94% higher when compared to September in the previous year. Also, the headline inflation for September was 1.08% lower than the one recorded for August 2023. Meaning that the changes in the prices of goods and services in September were less than in August 2023.

Food continues to be Nigeria’s biggest driver of inflation. Per the report, the food inflation rate for September 2023 was 30.64% on a year-on-year basis, which was 7.30% points higher compared to the rate recorded in September 2022 (23.34%). The report attributes the rise in food prices to increase in the prices of oil and fat, bread and cereals, potatoes, yam and other tubers, fish, fruit, meat, vegetables, milk, cheese, and eggs. However, food prices fell on a month-to-month basis. Food inflation rate recorded in September was 1.4% lower than the rate recorded in the previous month.

Nigeria’s inflation remains on a continuous uptrend despite several monetary measures by the country’s central bank to tame the rising inflation rates. Food also continues to be the biggest mover of Nigeria’s inflation in recent times. Food inflation has been driven up by the removal of fuel subsidies, which has led to increased prices of foods across the country. Today’s inflation data suggests an increased need to arrest food inflation. The government had earlier proposed a commodity board to solve the problem of food inflation but has so far proven ineffective.