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Nigeria's Inflation Rate Reverses Decline, Hits 32.7% in September 2024_
Nigeria's headline inflation rate has taken an unexpected turn, rising to 32.7% in September 2024 after two consecutive months of decline, according to the National Bureau of Statistics (NBS). This 0.55% increase from August's 32.15% rate indicates persistent price pressures across the country.
The NBS report highlights that year-on-year inflation has surged by 5.98 percentage points compared to September 2023's 26.72% rate. Food inflation remains a significant driver, climbing to 37.77% in September 2024, a 7.13% increase from the same period last year.
Rising costs of staples like rice, maize, beans, and yams continue to fuel inflation. The food inflation rate rose to 2.64% in September, up from 2.37% in August. The 12-month average food inflation rate ending September 2024 was 37.53%, an 11.88% points increase from September 2023's 25.65% rate.
The reversal of Nigeria's inflation rate decline may have significant implications for the country's economy. As food prices continue to rise, consumers may face increased financial strain. The government and policymakers will need to address these underlying issues to mitigate the effects of inflation and promote economic growth.
NBS noted that the September 2024 headline inflation rate showed an increase of 0.55% compared to the August 2024 headline inflation rate. On a year-on-year basis, the headline inflation rate was 5.98% points higher compared to the rate recorded in September 2023.
Furthermore, the month-on-month inflation rate in September 2024 was 2.52%, which was 0.30% higher than the rate recorded in August 2024. This means that in September 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in August 2024.
The inflation rate increase is a concern for Nigeria's economy, which has been struggling with high inflation rates for several years. The government has implemented various measures to control inflation, including monetary policy tightening and fiscal discipline.
However, the impact of these measures has been limited, and inflation remains a major challenge for the economy. The rise in inflation rate may lead to increased borrowing costs, reduced consumer spending, and decreased economic growth.
As Nigeria struggles to manage its inflation rate, the international community is watching closely. The country's economic performance has implications for regional stability and global economic trends.