…food prices highest in Yobe, Gombe, Sokoto
The two-month decline in the headline inflation rate in Nigeria seemed to have ended as Nigeria’s headline inflation, the national benchmark that measures the rate of increase in the prices of goods and services, regained its upward momentum as it rose to 32.70 percent in September 2024, the National Bureau of Statistics (NBS) has announced.
It should be noted that in July and August of this year, Nigerians heaved a sigh of relief as inflation rate, after a long haul, fell to 33.40 percent and 32.15 percent in July and August 2024 respectively, from 34.19 percent in June 2024, which was the highest inflation rate attained thus far in 2024.
The latest uptick in headline inflation in September 2024 amounted to an increase of 0.55 percent when compared to the inflation rate in August 2024 which was 32.15 percent.
“In September 2024, the headline inflation rate was 32.70% relative to the August 2024 headline inflation rate of 32.15%. Looking at the movement, 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 (26.72%),” NBS stated.
The results showed that on a yearly basis, it was 5.98 percent higher compared to the rate recorded for September 2023 which was 26.72 percent. This clearly shows that the rate of increase in the inflation rate was higher compared to the rate of inflation increased in September 2023.
“Furthermore, on a month-on-month basis, the Headline inflation rate in September 2024 was 2.52%, which was 0.30% higher than the rate recorded in August 2024 (2.22%). 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,” NBs stated.
The return of inflation rate to an upward trajectory came at a time the World Bank recently categorized Nigeria as one of the countries in the world facing severe food insecurity
“On the other hand, 18 countries experienced worsening situations due to factors including intensified conflict and climate-related shocks, such as droughts. Notable examples include Ethiopia, Nigeria, and Yemen, each witnessing an increase of more than 1 million people facing high levels of food insecurity from the previous year,” the World Bank stated in its Food Security Update for September 2024.
The NBS further added that the food inflation rate for the month of September 2024 was 37.77 percent on a year-to-year basis, which was 7.13 percent higher than the rate recorded in the month of September 2023 which was 30.64 percent. Monthly, the food inflation rate of September 2024 was 2.64 percent, an increase of 0.27 percent when compared to the rate of food inflation in August 2024 which was 2.37 percent.
“This increase was driven by rising prices of items in various categories: Bread & amp; Cereals (Guinea Corn, Rice, Maize), Potatoes, Yam & amp; Other Tubers (Yam, Cassava), Tobacco (Beer), Coffee, Tea & Cocoa (Lipton, Milo), and Oils & Fats (Vegetable Oil, Palm Oil),” Futureview Securities, said in a note to investors.
In September 2024, Nigeria’s year-on-year inflation rate was highest in Bauchi State, 44.83 percent, followed by Sokoto State, 38.74 percent, and Jigawa State 38.39 percent, while lowest in Delta State 26.35 percent, Benue State, 26.90 percent, and Katsina State 27.71 percent.
Month-on-month, inflation rate in Sokoto State at 4.63 percent, Taraba State, 4.07 percent, and Anambra State, 3.74 percent saw the highest inflation increases, while Kwara State at 1.14 percent; Cross River State, 1.78 percent, and Lagos State 1.82 percent experienced the slowest rise.
Also in September 2024, food inflation rate was highest on a year-on-year basis in Sokoto State at 50.47 percent; Gombe State, 44.09 percent; and Yobe State, 43.51 percent.
On the contrary, food inflation rate was lowest in Kwara State, 32.45 percent, Rivers State, 32.80 percent, and Kogi State, 32.83 percent.