Dec 15 (Lagos) - Inflation in Nigerian economy showed no signs of a slowdown in November as per the figures released by the Nigerian Bureau of Statistics.
Nigeria's year-on-year inflation paced higher in November at 28.20%, adding 0.87 percentage points from 27.33% y/y in October 2023, and beating 27.90% y/y Bloomberg estimate. Likewise, the monthly headline inflation reading increased further at 2.09% m/m in November, from 1.73% m/m in October. Food inflation also increased to 32.84% from 31.52% in October. However, core inflation (i.e excluding food and energy items), grew at a slower pace at 22.38% in November, below 22.58% recorded October, as reported by the National Bureau of Statistics (NBS).
Summary of Nigeria’s Inflation report for November 2023:
• On a monthly basis, the headline index grew by 2.09% in November (vs 1.73% in October).
• The core index increased at 1.53% m/m in November vs. 1.39% m/m in October. Similarly, the food sub-index grew at 2.42% m/m compared to 1.91% m/m in October.
• The urban inflation rate increased to 30.21% y/y (vs 29.29% y/y in October 2023).
• The rural inflation rate was rose at 26.43% y/y (vs 25.58% y/y in October 2023).
The inflationary trend in Nigeria has sustained its upward trajectory and is anticipated to attain a level of 30.00% in the first quarter of 2024.
Various factors including the adverse effects stemming from currency depreciation and the elimination of fuel subsidies, have been tagged as the major drivers.