By Hosea Parah, Abuja

Nigeria is facing escalating economic difficulties as the National Bureau of Statistics (NBS), reports that the country’s inflation rate surged to 34.60% in November 2024, up from 33.88% in October. This marks a 0.72% increase from the previous month and a significant 6.40% jump compared to November 2023, when inflation stood at 28.20%.

Prince Adeyemi Adeniran, Statistician-General of the Federation and CEO of NBS, attributed the inflationary spike to significant price hikes in key sectors. The Food and Non-Alcoholic Beverages sector saw a dramatic year-on-year rise of 17.92%, while Housing, Water, Electricity, Gas, and Other Fuels rose by 5.79%. Additionally, Clothing and Footwear increased by 2.65%.

Food inflation has become particularly concerning, now reaching 39.93% year-on-year, a sharp rise from 32.84% in November 2023. The report identified yams, rice, maize, palm oil, and vegetable oils as the primary drivers of this inflation. On a month-to-month basis, food inflation increased slightly to 2.98%, up from 2.94% in October. The twelve-month average for food inflation has also worsened, climbing to 38.67% from 27.09% in the previous year.

Core inflation, which excludes volatile food and energy prices, also saw a rise, reaching 28.75% in November 2024, up from 22.38% in the same month of 2023. Key factors contributing to core inflation include higher transportation costs, particularly bus and motorcycle fares, as well as rising rent and personal grooming expenses. Despite this, month-on-month core inflation showed a slight decrease, easing to 1.83% from 2.14% in October.

The inflation rate also varies significantly between urban and rural areas, with urban inflation reaching 37.10% year-on-year, while rural inflation stood at 32.27%. Month-to-month, urban inflation rose by 2.77%, slightly higher than the rural increase of 2.51%.

At the state level, inflation rates are uneven, with Bauchi, Kebbi, and Anambra seeing the highest year-on-year inflation rates at 46.21%, 42.41%, and 40.48%, respectively. On the other hand, Delta, Benue, and Katsina recorded the lowest rates, ranging from 27.47% to 29.57%.

Food inflation also varied regionally, with Sokoto, Yobe, and Edo witnessing the highest increases, surpassing 47%, while Kwara, Kogi, and Rivers had the slowest food price hikes.

Looking ahead, although month-on-month inflation eased slightly, the broader economic outlook remains bleak as consumers face ongoing price increases. The NBS attributes rising food prices, transportation costs, and housing expenses as the key drivers of inflation, all of which continue to erode purchasing power.

As the government grapples with these mounting economic challenges, the impact of inflation is expected to continue affecting various sectors of the economy. The NBS encourages citizens to stay informed, with the full inflation report available on their website