Yam, rice prices surge as inflation hits 34.60%

Nigeria’s headline inflation has increased to 34.60 per cent in the month of November, the National Bureau of Statistics (NBS) has stated.

A report by the bureau said headline inflation rate showed an increase of 0.72 percent compared to the 33.88 per cent recorded in October 2024.

On a year-on-year basis, the headline inflation rate was 6.40 per cent points higher than the rate recorded in November 2023 (28.20 per cent).

“This shows that the headline inflation rate (year-on-year basis) increased in November 2024 compared to the same month in the preceding year (i.e., November 2023).

“Furthermore, on a month-on-month basis, the headline inflation rate in November 2024 was 2.638 percent which was 0.002 per cent points lower than the rate recorded in October 2024 (2.640 per cent).

“This means that in November 2024, the rate of increase in the average price level is slightly lower than the rate of increase in the average price level in October 2024.”

For Food inflation, it said it increased to 39.93 per cent on a year-on-year basis, 7.08 percent points higher than the rate recorded in November 2023 (32.84 per cent).

The rise in food inflation on a year-on-year basis was caused by increases in prices of the following items: yam, water yam, coco yam, etc, (Potatoes, yam & other tubers class), guinea corn, maize grains, rice, etc (Bread and Cereals Class), Beer, Pinto (Tobacco Class), and palm oil, vegetable oil, etc (Oil and Fats Class).”

“On a month-on-month basis, the food inflation rate in November 2024 was 2.98 per cent, which shows 0.05 per cent points increase compared to the rate recorded in October 2024 (2.94 per cent). The rise is attributed to the rate of increase in the average prices of mudfish, catfish dried, dried fish sardine, etc (fish class), rice, yam flour, millet whole grain, corn flour, etc (bread and cereals class), agric egg, powdered milk, fresh milk, etc (milk, cheese and eggs class) and dried beef, goat meat, frozen chicken, etc (meat class).”

It went on to state that the average annual rate of Food inflation for the twelve months ending November 2024 over the previous twelve-month average was 38.67 per cent, which was 11.58 per cent points higher compared with the average annual rate of change recorded in November 2023 (27.09 per cent).

Forex policy major cause for increase – Expert

A financial expert and senior partner at SPM Professionals, Paul Alaje, said the real problem with Nigeria’s high inflation figure is the foreign exchange policy by the Central Bank of Nigeria and other policy instruments it has issued in the past one year.

“Nigeria’s Inflation surges from already unthinkable 33.88 per cent to 34.6 per cent year on year. This is expected as we attempt to solve inflationary pressures with conventional approaches. This inflation is driven by monetary and non-monetary factors.”