The National Bureau of Statistics (NBS) has revealed that Nigeria’s inflation rate surged to 21.09% in October 2022, the highest in over 19 years.
The NBS disclosed this in its Consumer Price Index (CPI) report published on Tuesday.
According to the report, the October inflation figure rose by 5.09% compared to the rate recorded in October 2021, which was 15.99%.
This shows that the general price level for the headline inflation rate increased in October 2022 when compared to the same month in the preceding year.
However, there was a respite as the inflation figure, based on a month-on-month basis, was 1.24%, which was 0.11% lower than the rate recorded in September 2022 (1.36%).
One significant challenge the new inflation rate could bring will be the pressure on the apex bank to increase interest rates again, resulting in loans becoming expensive.
Furthermore, the value of what Nigerians’ salary can buy has also significantly dropped.
NBS also, in its report, revealed that the urban inflation rate stood at 21.63%, which is 5.11% higher compared to the 16.52% recorded in October 2021.
While the rural inflation rate in October 2022 was 20.57% on a year-on-year basis, this was 5.09% higher than the 15.48% recorded in October 2021.
For food inflation, NBS noted that in October 2022, it rose again and now stands at 23.72% on a year-on-year basis.
It is 5.39% higher compared to the rate recorded in October 2021 (18.34%).
Interestingly, on a month-on-month basis, the food inflation rate in October was 1.23%; representing a 0.21% decline compared to the rate recorded in September 2022 (1.43%).
The decline was attributed to the reduction in prices of some food items like tubers, palm oil, maize, beans, and vegetables.