Nigeria's Inflation Rate Hits Record High: 33.88% in October 2024

Nigeria's Inflation Rate Hits Record High: 33.88% in October 2024

Nigeria's inflation rate has surged to 33.88% in October 2024, up from 32.70% in September, according to the National Bureau of Statistics (NBS) latest Consumer Price Index and Inflation report . This significant increase has raised concerns about the country's economic stability.

The report revealed a month-on-month headline inflation rate of 2.64%. Food inflation also witnessed a substantial rise, jumping to 39.16% in October from 37.77% in the previous month. Energy costs have seen a sharp increase during the period under review, with petrol prices skyrocketing to over ₦1,030 per litre in October, up from ₦617 per litre in August 2024.

The surge in inflation can be attributed to several factors, including rising costs of staple foods, such as rice, maize, and vegetables, as well as increased electricity tariffs and cooking gas prices. Supply chain disruptions, particularly in the agricultural sector, have also contributed to the inflationary pressures.

Economists warn that Nigeria's inflation rate may continue to rise unless the government addresses the underlying issues. "The inflation rate is alarming, and it's crucial for policymakers to take proactive measures to stabilize the economy," said Dr. Muda Yusuf, Director-General of the Lagos Chamber of Commerce and Industry.

The Central Bank of Nigeria (CBN) had forecasted a rise in inflation through its Inflation Expectation Survey. In response, the CBN may consider monetary policy adjustments to curb inflationary pressures. This could involve increasing interest rates to reduce borrowing and spending.

The inflation surge has far-reaching implications for Nigerian citizens, including reduced purchasing power, increased cost of living, and economic uncertainty. To mitigate these effects, the government should implement policies addressing supply chain disruptions and promoting agricultural productivity.