Nigeria’s headline inflation nears 30% high

Nigeria’s headline inflation rate rose to 27.33% in October 2023 from 26.72% in August 2023 and 21.09% in October 2022, according to data from the National Bureau of Statistics (NBS). Three times the upper bound inflation objective of 9% is the headline inflation rate. The information also reveals that the rate of food inflation was 31.52%. Core inflation increased to 22.58%, which is the total inflation excluding food and energy. Thousands of Nigerians are forced into poverty as a result of a persistent double-digit inflation rate that quickly reduces household purchasing power.

The rate of increase in social discontent and insecurity would be concerning if the high inflation, particularly in food prices, continues for another three months. The government must move quickly to provide social safety programs for the most disadvantaged households and to establish food banks to expand access to wholesome meals. President Tinubu proclaimed a food emergency in July. After a period of three months, food costs show no signs of abating, climbing from 25.25% in June to 31.52% in October. The government must provide the people with an update on the agriculture program.

This is crucial for breaking down the possible causes of the high food inflation, which go beyond flooding, increased transportation costs, and food insecurity. The government can also provide tax rebates and other financial incentives to businesses, especially to those that are ready to close their doors owing to excessive operating costs. SOURCE: CSEA Africa