Nigeria’s inflation rate surged to 33.88% in October 2024, up from 32.70% in September, driven by rising energy costs, and currency volatility, and food supply disruptions. Analysts project further increases, with November’s inflation potentially reaching 34.60%. Key contributors include elevated gas prices, weakened naira, and structural challenges in agriculture, exacerbated by flooding in critical regions.
Private sector stakeholders and experts have expressed concern over persistent inflationary pressures, which have strained consumer budgets and increased business operational costs. Food inflation, a significant factor, rose to 39.16% in October, marking a three-month high. Despite interventions by the Central Bank of Nigeria (CBN), exchange rate instability continues to inflate import costs, challenging market stability.
Consumers and traders lament skyrocketing food prices, with staples like vegetables and palm oil witnessing dramatic increases. Experts advocate a shift from monetary tightening to productivity-focused solutions to address supply-side challenges. The rising inflation underscores the need for strategic reforms to stabilize Nigeria’s economy and reduce the burden on its citizens.
