October 16, 2023

Nigeria’s annual inflation rose in September to 26.72%, amid harsh economic realities occasioned by the removal of fuel subsidy in May.

The September inflation rate rose for a ninth straight month from August’s 25.8%, the National Bureau of Statistics (NBS) said on Monday.

Food inflation, making up the bulk of Nigeria’s inflation basket, rose to 30.64% in September from 29.34% in August.

“Our expectation is that the inflation picture will continue to worsen. The impact of the removal of fuel subsidies will continue to push up on inflation while the naira’s devaluation will also continue to feed through,” he said.

Inflation in Nigeria has risen to double-digits since 2016, eroding incomes and savings, and may prompt the central bank to raise interest rates, which are already at their highest in nearly two decades, at its next meeting. Annual inflation is at its highest now since 2005.

“In September 2023, the headline inflation rate increased to 26.72% relative to the August 2023 headline inflation rate which was 25.80%,” the report partly read.

“Looking at the movement, the September 2023 headline inflation rate showed an increase of 0.92% points when compared to the August 2023 headline inflation rate.

“On a year-on-year basis, the headline inflation rate was 5.94% points higher compared to the rate recorded in September 2022, which was 20.77%.”

“The rise in food inflation on a year-on-year basis was caused by increases in prices of oil and fat, bread and cereals, potatoes, yam and other tubers, fish, fruit, meat, vegetables and milk, cheese, and eggs,” the NBS said.