The report stated that on a year-on-year basis, the headline inflation rate was 6.24 percent points higher compared to the rate recorded in October 2022
A report by the National Bureau of Statistics (NBS), has shown that Nigeria’s inflation rate in October increased from 26.72 percent recorded in September to 27.33 percent, with an increase of 0.61 percent when compared to the September headline inflation rate.
The report stated that on a year-on-year basis, the headline inflation rate was 6.24 percent points higher compared to the rate recorded in October 2022, which was 21.09 percent, indicating that the inflation rate on a year-on-year basis increased in October 2023 when compared to the same month in 2022.
The NBS however noted that on a month-on-month basis, the inflation rate in October was 1.73 percent, which was 0.37 percent lower than the rate recorded in September which was 2.10 percent, meaning that in October, the rate of increase in the average price level is less than the rate of increase in the average price level in September.
“The percentage change in the average CPI for the twelve months ending October 2023 over the average of the CPI for the previous twelve-month period was 23.44 percent, showing a 5.57 percent increase compared to 17.86 percent recorded in October 2022,” the report added.
It also stated that urban inflation rate on a year-on-year basis in October 2023 was 29.29 percent, indicating 7.66 percent points higher compared to the 21.63 percent recorded in October 2022.
On a month-on-month basis, the urban inflation rate was 1.81 percent in October, showing 0.43 percent points lower compared to September 2023 which was 2.24 percent, while the corresponding 12-month average for the urban inflation rate was 24.76 percent in October 2023, showing 6.38 percent points higher compared to the 18.38 percent reported in October 2022.
Also, looking further at the President Bola Tinubu-led government, the report showed that the rural inflation rate in October 2023 was 25.58 percent on a year-on-year basis, which showed 5.01 percent higher compared to the 20.57 percent recorded in October 2022.
On a month-on-month basis, the rural inflation rate in October 2023 was 1.67 percent, showing a decline by 0.29 percent points compared to September 2023 points which was 1.96 percent.
The corresponding 12-month average for the Rural inflation rate in October 2023 was 22.23 percent, showing 4.85 percent higher compared to the 17.38 percent recorded in October 2022.
The NBS further explained that “The food inflation rate in October 2023 was 31.52 percent on a year-on-year basis, which was 7.80 percent points higher compared to the rate recorded in October 2022 which was 23.72 percent.
“The rise in food inflation on a year-on-year basis was caused by increases in prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables and milk, cheese and eggs.”
On a month-on-month basis, it noted that the food inflation rate in October was 1.91 percent, which indicated 0.54 percent lower compared to the rate recorded in September which was 2.45 percent.
“The decline in food inflation on a month-over-month basis was caused by the decline in the rate of increase in the average prices of fruits, oil and fat, coffee, tea and cocoa, Bread and cereals.
“The average annual rate of food inflation for the 12 months ending October 2023 over the previous 12-month average was 26.33 percent, which was a 6.50 percent points increase from the average annual rate of change recorded in October 2022 which was 19.83 percent.”
The NBS noted that before now, “all items less farm produces” is referred to as the Core inflation because the prices of items that constitute energy including Premium Motor Spirit (PMS) were regulated by the government.
“Due to the deregulation of the sector and the removal of the fuel subsidy, all the items that constitute energy are now determined by market forces and hence their prices are termed volatiles. Therefore, Core inflation is referred to as all items index less farm produces and energy.
“The “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 22.58 percent in October 2023 on a year-on-year basis; an increase of 5.12 percent when compared to the 17.46 percent recorded in October 2022.
“The highest increases were recorded in prices of Passenger Transport by Road, Medical Ser-vices, Passenger Transport by Air, Actual and Imputed Rentals for Housing, Pharmaceutical products etc.,” it stated.
On a month-on-month basis, the report stated that the Core Inflation rate was 1.39 percent in October compared to September which stood at 2.22 percent, showing a decline of 0.83 percent.
The average 12-month annual inflation rate ending October 2023 was 19.98 percent, showing 4.60 percent points higher than the rate recorded for the 12-month average ending October 2022 which was 15.38 percent.
In analysing price movements under this section, the NBS noted that the Consumer Price Index (CPI) is weighted by consumption expenditure patterns which differ across states and locations.
“Accordingly, the weight assigned to a particular Food or Non-Food item may differ from State to State making interstate comparisons of consumption baskets inadvisable and potentially misleading,” it pointed out.
On all Items Inflation, NBS stated that in October, the All-Items inflation rate on a year-on-year basis was highest in Kogi state with 34.20 percent, followed by Rivers state with 31.44 percent, Lagos state with 31.23 percent, while Borno state recorded 20.06 percent, Jigawa state 23.52 percent and Sokoto state 24.47 percent in headline inflation on year-on-year basis.
On a month-on-month basis in October, Yobe state recorded the highest increases with 3.72 percent, followed by Jigawa state which recorded 2.85 percent increase, Sokoto state 2.84 percent, while Kogi, Edo and Kwara recorded 1.01 percent, 1.05 percent and 1.18 percent respectively.
The report added that in October, food inflation on a year-on-year basis was highest in Kogi state with 41.74 percent, followed by Kwara state with 38.48 percent and Lagos state with 37.37 percent, while Borno state recorded 24.41 percent, Kebbi state 24.90 percent and Jigawa state 25.10 percent.
On a month-on-month basis in October, food inflation was highest in Yobe state with 5.35 percent, followed by Sokoto state with 3.68 percent and Jigawa state with 3.45 percent, while Edo state record 0.95 percent, Katsina state recorded 1.03 percent and Rivers state recorded 1.10 percent.