The National Bureau of Statistics (NBS) has reported that Nigeria’s headline inflation rate for October 2023 has reached 27.33%, marking a year-on-year increase of 6.24 points compared to October 2022 (21.09%). On a month-over-month basis, the inflation rate in October 2023 was 1.73%, a 0.37% reduction from September 2023 (2.10%).
The Central Bank of Nigeria (CBN) expressed optimism, attributing the lower rate of increase in the average price level in October to its monetary policy stance and money market reforms, suggesting that these measures were having the desired effect.
The Food sub-index for October 2023 increased to 31.52% on a year-on-year basis, driven by higher prices of items such as bread, cereals, oil, fat, potatoes, yam, and other tubers, fish, fruit, meat, vegetables, and milk.
For Core inflation, which excludes volatile farm produce and Petroleum Motor Spirit (PMS), it stood at 22.58% in October 2023 on a year-on-year basis, a rise of 5.12% compared to October 2022 (17.46%).
Despite the increase in inflation, the CBN stated that its tightening stance had helped slow down the spike, with available statistics showing signs of deceleration in prices. Reforms in the money market and stability in the foreign exchange market contributed to a substantial drop in month-on-month changes recorded in October.
The highest inflation rates on a year-on-year basis were reported in Kogi (34.20%), Rivers (31.44%), and Lagos (31.23%), while Borno (20.06%), Jigawa (23.52%), and Sokoto (24.47%) recorded the slowest rise in headline inflation.
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