The National Bureau of Statistics (NBS) in its latest Consumer Price Index (CPI) report released today said, the headline inflation rate increased to 27.33% in October 2023, relative to the September 2023 headline inflation rate which was 26.72%.
NBS said, looking at the movement, the October 2023 headline inflation rate showed an increase of 0.61% points when compared to the September 2023 headline inflation rate.
Similarly, the Bureau said, on a year-on-year basis, the headline inflation rate was 6.24% points higher compared to the rate recorded in October 2022, which was (21.09%).
It said, “the increase in the headline index for October 2023 was attributed to the increase in some items in the basket of goods and services at the divisional level.
“These increases were observed in Food and non-alcoholic Beverages (14.16%), Housing, Water, Electricity, Gas & other Fuel (4.57%), Clothing and footwear (2.09%), Transport (1.78%), Furnishings and household Equipment and maintenance (1.37%), Education (1.08%) and Health (0.82%).
“Others are Miscellaneous Goods & Services (0.45%), Restaurants & Hotels (0.33%), Alcoholic Beverages, Tobacco & Kola (0.30%), Recreation & Culture (0.19%) and Communication (0.19%)”, NBS said.
However, it said, on a month-over-month basis, the headline inflation rate in October 2023 stood at 1.73%, which shows that the rate of increase in the average price level was less than that of the preceding month by 0.37% when compared to the rate recorded in September 2023 (2.10%).
It said, the percentage change in the average CPI for the twelve months ending October 2023 over the average of the CPI for the previous corresponding twelve-month period was 23.44%, showing a 5.57% increase compared to 17.86% recorded in October 2022.
Meanwhile, it said, the Food sub-index for October 2023 increased to 31.52% on a year-on-year basis, which was 7.80% points higher compared to the rate recorded in October 2022 (23.72%).
NBS said, the rise in Food inflation on a year-on-year basis was attributed to increases in prices of Bread & cereals, Oil & fat, Potatoes, Yam & other Tubers, Fish, Fruit, Meat, Vegetables and Milk, Cheese, and Eggs.
“However, on a month-on-month basis, the Food inflation rate in October 2023 was 1.91%. This was 0.54% lower compared to the rate recorded in September 2023 (2.45%). The decline in Food inflation was caused by a decrease 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 twelve months ending October 2023 over the previous twelve-month average was 26.33%, which was a 6.50% points increase from the average annual rate of change recorded in October 2022 (19.83%)”, the Bureau said.
It said, the core inflation, which is All items less volatile farm produces and Petroleum Motor Spirit (PMS). As communicated in the previous month, the exclusion of the PMS is due to the deregulation of the commodity by the removal of subsidy. The core inflation rate stood at 22.58% in October 2023 on a year-on-year basis.
“This shows a rise of 5.12% when compared to the 17.46% recorded in October 2022. The highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Passenger Transport by Air, Actual and Imputed Rentals for Housing, Pharmaceutical products etc.
“Conversely, on a month-on-month basis, the Core Inflation rate was 1.39% in October 2023. Which was slowed down by 0.83% compared to 2.22% recorded in September 2023.
“The average twelve-month annual inflation rate was 19.98% for the twelve months ending October 2023; this was 4.60% points higher than the 15.38% recorded in October 2022”, it said.
NBS in the report said, “the Urban consumer’s inflation rate on a year-on-year basis stood at 29.29% for October 2023, this shows a 7.66% point higher compared to the 21.63% recorded in the corresponding month in the year 2022.
“On a month-on-month basis, the Urban inflation rate grew by 1.81% in October 2023, which shows a decrease of 0.43% points compared to 2.24% in September 2023.
“The twelve-month average annual inflation rate ending October 2023 over the previous corresponding twelve-month average, the Urban inflation rate was 24.76%. This was 6.38% points higher compared to the 18.38% reported in October 2022”, it said.
The report said, the Rural consumer’s sub-index in October 2023 was 25.58% on a year-on-year basis; this was 5.01% higher compared to the 20.57% recorded in October 2022.
“On a month-on-month basis, the Rural sub-index in October 2023 was 1.67%, which decreased by 0.29% points compared to September 2023 (1.96%).
“The twelve-month average annual inflation rate ending October 2023 over the previous corresponding twelve-month average, Rural inflation rate was 22.23%. This was 4.85% higher compared to the 17.38% recorded in October 2022”, it said.
According to the Bureau, the analyses of the states show that the all-item index for October 2023, on a year-on-year basis was highest in Kogi (34.20%), Rivers (31.44%), Lagos (31.23%), while Borno (20.06%), Jigawa (23.52%) and Sokoto (24.47%) recorded the slowest rise in headline inflation.
“On a month-on-month basis, October 2023 recorded the highest increases in Yobe (3.72%), Jigawa (2.85%), Sokoto (2.84%), while Kogi (1.01%), Edo (1.05%) and Kwara (1.18%) recorded the slowest rise on month-on-month inflation”, it said.
NBS said, the state-level analyses of the food index in October 2023, on a year-on-year basis, showed the highest increases in Kogi (41.74%), Kwara (38.48%), and Lagos (37.37%), while Borno (24.41%), Kebbi (24.90%) and Jigawa (25.10%) recorded the slowest rise.
“On a month-on-month basis, however, October 2023 Food inflation was highest in Yobe (5.35%), Sokoto (3.68%), and Jigawa (3.45%), while Edo (0.95%), Katsina (1.03%) and Rivers (1.10%) recorded the slowest rise”, the report said.