Nigeria’s inflation rate jumps to 20.77%, hits 17-year high

NIGERIA’s inflation rate has reached an all-time high of 20.77 per cent in September 2022, from 20.52 per cent recorded in August of the same year.

The nation’s inflation rate has been on the upward trajectory since President Muhammadu Buhari assumed office in May 2015. The figure was 9.3 per cent in October 2015.

Nigeria’s statistics office, the National Bureau of Statistics (NBS), said the inflation rate on a year-by-year basis rose by 4.14 per cent, while the same figure rose by 1.36 per cent between August 2022 and September 2022. Bloomberg economists, in a survey, had initially estimated a 21 per cent hike.

A statement by the NBS read, “In September 2022, on a year–on- year basis, the headline inflation rate was 20.77 per cent. This was 4.14 per cent points higher compared to the rate recorded in September 2021, which was (16.63 per cent).

“This indicates that in the month of September 2022, the general price level was 4.14 per cent higher relative to September 2021. On a month-on-month basis, the headline inflation rate in September 2022 was 1.36 per cent. This was 0.41 per cent lower than the rate recorded in August 2022 (1.77 per cent). This means that in the month of September 2022, the headline inflation rate (month–on–month basis) declined by 0.41 per cent, relative to August 2022.”

The NBS gave three reasons for the heightened inflation rate. It mentioned disruption in the supply of food products, increase in import cost due to the persistent currency depreciation, and the general increase in the cost of production.

It noted that food inflation rate in September 2022 was 23.34 per cent on a year-on-year basis, which was 3.77 per cent higher compared to the rate recorded in September 2021 (19.57 per cent).

This rise in food inflation, it explained, was caused by increases in prices of bread and cereals, food products, potatoes, yam and other tubers, oil, and fat.






     

     

    The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, while confirming fears of another global recession in 2023 at the institution’s 2022 Annual meeting, warned that inflation had the tendency to affect poor people. Georgieva explained that support would be needed, especially in terms of monetary and fiscal policy.

    Managing Director, International Monetary Fund, Kristalina Georgieva. Credit: Twitter/@imf_podcast

    A professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Sheriffdeen Tella, believes inflation may not stop rising till the end of the year

    “Inflation is rising worldwide. Our naira has depreciated badly as well as the cost of production. For inflation to abate, a lot of other pieces have to come down. This includes the exchange rate, the price of energy and global inflation must come down. A lot of things affect the prices.

    “We can control this phenomenon by improving our output and currency, and reducing the cost of production. We still have additional problem caused by flooding. Inflation is not coming down before December,” he said.

    Experienced Business reporter seeking the truth and upholding justice. Covered capital markets, aviation, maritime, road and rail, as well as economy. Email tips to [email protected]. Follow on Twitter @theminentmuyiwa and on Instagram @Hollumuyiwah.

    Join the ICIR WhatsApp channel for in-depth reports on the economy, politics and governance, and investigative reports.

    Support the ICIR

    We invite you to support us to continue the work we do.

    Your support will strengthen journalism in Nigeria and help sustain our democracy.

    If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here


    Support the ICIR

    We need your support to produce excellent journalism at all times.

    - Advertisement

    Recent

    - Advertisement