Nigeria’s inflation climbs to 34.60% in November 2024, sparking optimism for decline

Nigeria’s inflation reaches 34.60% in November 2024, up from 33.88% in October. Despite the rise, many expect inflation to slow down in the coming months.

 

 

[dropcap]N[/dropcap]igeria’s inflation rate has risen to 34.60% in November 2024, a 0.72% increase from October’s 33.88%.

This latest surge, marking a 6.40% increase compared to November 2023’s rate of 28.20%, reflects ongoing economic pressures, particularly in food and core inflation.

 

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The increase in inflation is primarily driven by rising food prices, with food inflation reaching 39.93%, up from 32.84% a year earlier.

Items like yam, rice, maize, and palm oil have seen significant price hikes, placing considerable strain on Nigerian households.

On a month-on-month basis, food inflation rose by 2.98% in November, slightly higher than October’s 2.94%.

Despite the persistent inflationary pressures, there is cautious optimism for the future.

According to the Inflation Expectations Survey Report published by the Central Bank of Nigeria (CBN), both businesses and households expect inflation to gradually ease over the next six months.

Core inflation, which excludes food and energy prices, also saw an increase, rising to 28.75% in November 2024 from 22.38% in the same period last year.

This reflects the broader economic challenges, including higher costs in transportation, housing, and personal services.

Regionally, inflation varies, with Bauchi, Kebbi, and Anambra recording the highest year-on-year inflation rates at 46.21%, 42.41%, and 40.48%, respectively. In contrast, Delta, Benue, and Katsina saw lower rates, ranging from 27.47% to 29.57%.

The gap between urban and rural inflation also widened. Urban inflation stood at 37.10% in November, compared to 32.27% in rural areas.

This reflects higher price pressures in cities, where the cost of living has surged significantly.

Looking ahead, analysts from Arthur Steven Asset Management Limited predict a slight decrease in inflation, forecasting a dip to 34% in December.

However, this remains far from the Central Bank’s target of 21.4%, highlighting the ongoing challenges facing Nigeria’s economy.

While inflation remains high, the recent slowdown in the pace of price increases, combined with expectations for future relief, offers a glimmer of hope for Nigerian consumers and businesses struggling with the rising cost of living.