• Food inflation increases to 32.84% – NBS
In November 2023, the overall inflation rate rose to 28.20%, surpassing the October 2023 rate of 27.33%. This indicates a month-on-month increase of 0.87%.
When compared to November 2022, the year-on-year headline inflation rate was notably higher, marking an increase of 6.73% points from the 21.47% recorded in the same month the previous year.
Additionally, on a month-on-month basis, the inflation rate for November 2023 was 2.09%, showing a 0.35% increase from the October 2023 rate of 1.73%. This implies that the rate of average price level increase in November 2023 exceeded that observed in October 2023.
Food inflation increases to 32.84%
For November 2023, the year-on-year Food inflation rate stood at 32.84%, marking an increase of 8.72% points from the November 2022 rate of 24.13%.
The spike in Food inflation was driven by higher prices in categories such as Bread and Cereals, Oil and Fat, Potatoes, Yam and Other Tubers, Fish, Fruit, Meat, Vegetables, Coffee, Tea, and Cocoa.
On a month-on-month basis, the Food inflation rate for November 2023 reached 2.42%, reflecting a 0.51% increase compared to the October 2023 rate of 1.91%. The monthly increase in Food inflation was attributed to a rise in the rate of average prices for Bread and Cereals, Oil and Fat, Meat, Coffee, Tea, Cocoa, Potatoes, Yam, and Other Tubers.
“The average annual rate of Food inflation for the twelve-months ending November 2023 over the previous twelve-month average was 27.09%, which was a 6.68% points increase from the average annual rate of change recorded in November 2022 (20.41%),” the recent report noted.
Nigerians to spend 56% income on food
As of October, the average price of 1kg of Rice was sold locally at N819.42 while food inflation was 31.52% according to NBS.
With the food inflation rising to 32.84%, and a 2.42% increase in margin, Nigerians are expected to spend more of their income to celebrate the holiday.
Since Tinubu assumed office on May 29, there has been a notable surge in food prices, triggered by his abrupt discontinuation of the petrol subsidy and shortly thereafter by the floating of the naira.
With headline inflation rising to 28.20%, many households are expected to spend a huge chunk of their hard earnings on purchasing food items to celebrate the yuletide with their families.
According to a recent report by the World Bank, an additional 24 million Nigerians have been plunged into poverty due to the incessant rise in inflation.
In addition, the Food and Agricultural Organization (FAO) reported in October that around 26.5 million Nigerians are at risk of hunger in 2024.
The report also noted that Nigerians in the FCT, Sokoto, Borno, and Zamfara states are most at risk of hunger next year.
Selected food items
Nairametrics earlier reported that in October, prices of certain food items, including beef, tomatoes, beans, and yams, saw increases, according to NBS in its Selected Food Prices Watch Report for October 2023, which was issued in Abuja.
Optics
Over the past few years, food prices in Nigeria have been steadily increasing, with inflation consistently reaching double digits. The National Bureau of Statistics (NBS) reported an October inflation rate of 27.33%, the highest in nearly two decades.
Data from the National Bureau of Statistics also shows that the average Nigerian reportedly spent around 56% of their income on food.
Recently, the administration of President Bola Tinubu declared a state of emergency on agriculture and food security and moved it to a priority list in the National Security Council.
Part of the administration’s plan aims to address issues such as farm and farmer security, funding, utilisation of river basins for all year-round agriculture, creation of a commodity exchange board etc.
It remains to be seen how these plans are implemented.
Core inflation
Core inflation, excluding the prices of volatile agricultural products and energy, reached 22.38% in November 2023 on a year-on-year basis. This reflects an increase of 4.39% compared to the November 2022 rate of 17.99%.
The Core Inflation rate for November 2023 on a month-on-month basis was 1.53%, showing an increase from the October 2023 rate of 1.39%, with a rise of 0.14%.
Urban inflation
The year-on-year urban inflation rate in November 2023 reached 30.21%, marking an increase of 8.13% points from the November 2022 rate of 22.09%. On a month-on-month basis, the Urban inflation rate for November 2023 was 2.23%, reflecting a 0.41% increase compared to the October 2023 rate of 1.81%.
Rural inflation
The year-on-year rural inflation rate for November stood at 26.43%, indicating a rise of 5.55% points from the November 2022 rate of 20.88%. On a month-on-month basis, the Rural inflation rate for November 2023 was 1.99%, showing an increase of 0.31% points compared to the October 2023 rate of 1.67%.
