Nigeria’s annual inflation rate surged to 27.33% in October, marking a 0.61% increase from the previous month, according to the National Bureau of Statistics (NBS).
The NBS reported that on a year-on-year basis, the headline inflation rate witnessed a significant rise of 6.24% points compared to October 2022, escalating from 21.09% to the current 27.33%.
Particularly alarming is the spike in food inflation, which reached 31.52% in October on a year-on-year basis. This surge represents a 7.80% increase from the same period in 2022, when the food inflation rate stood at 23.72%.
The worsening inflationary trend has been attributed to various factors, including the impact of government policies such as the removal of subsidies on petrol. President Bola Tinubu’s announcement on May 29 regarding the subsidy removal has exacerbated the situation, leading to increased hardships for many Nigerians and a subsequent rise in the prices of goods and services.
The depreciation of the naira by over 50% in recent months, both in authorized and unauthorized market segments, has further contributed to the economic challenges. This depreciation followed the Central Bank of Nigeria’s decision in June to consolidate all forex windows into the Investors and Exporters (I&E) window.
In response to the persistently high inflation, the Central Bank of Nigeria took drastic measures by hiking interest rates to their highest levels in nearly two decades. President Tinubu declared a State of Emergency on food insecurity in July, emphasizing the urgency of addressing the escalating food prices.
As the nation grapples with these economic challenges, President Tinubu has directed that all matters related to food and water availability and affordability be incorporated within the purview of the National Security Council. Stay tuned for more details as the situation unfolds.