Nigeria’s Inflation Hits 34.60% in November 2024: A 28-Year High Amid Rising Costs of Living

Nigeria's inflation rate soared to 34.60% in November 2024, signaling a sharp increase in the cost of goods and services nationwide. This data was reported by the Nigeria Bureau of Statistics (NBS) in its latest Consumer Price Index (CPI) release. The figure marks a 0.72% rise from the 33.88% recorded in October 2024.

A 28-Year High

This inflation level is the highest Nigeria has experienced since March 1996, when the rate peaked at 41.9%. Over the course of 2024, the country has faced steadily rising inflation, climbing from 28.9% at the end of 2023 to the current rate, despite efforts by the Central Bank of Nigeria to counteract the trend. The bank's monetary policy measures, including raising its benchmark interest rate from 18.75% in 2023 to 27.5% in 2024, have not stemmed the inflationary pressures.

November Inflation Breakdown

In November 2024, inflation reached its highest point for the year, driven by escalating fuel and food prices. On a month-on-month basis, the inflation rate increased by 2.638%, slightly lower than the 2.640% recorded in October. Monthly inflation has stayed under 3% since March, when it hit a peak of 3.1%.

Key contributors to inflation included significant increases in food prices, imported goods, and alcoholic beverages. Most subcategories recorded inflationary increases, with exceptions such as health, communication, recreation, and culture, which experienced declines on a year-on-year basis.

Urban vs. Rural Inflation

Urban areas reported an inflation rate of 37.10% year-on-year in November, reflecting a 6.88% increase compared to the same period in 2023. Month-on-month, urban inflation rose slightly to 2.77%. Meanwhile, rural areas saw a year-on-year inflation rate of 32.27%, up by 5.84% from November 2023. However, rural inflation on a month-on-month basis dropped slightly to 2.51%.

The twelve-month average inflation rates for urban and rural areas stood at 35.07% and 30.71%, respectively, highlighting significant year-over-year increases.

Food Inflation

Food inflation continued to be a major driver, rising to 39.93% in November 2024 from 32.84% in the same month last year—a 7.08% increase year-on-year. This was largely driven by higher prices for staples like yam, potatoes, maize, rice, palm oil, and vegetable oil.

On a month-on-month basis, food inflation was 2.98%, up from 2.94% in October 2024. The rise was attributed to cost increases in items such as fish, meat, bread, and cereals. The twelve-month average food inflation rate was 38.67%, significantly higher than the 27.09% recorded in November 2023.

Sokoto, Yobe, and Edo states experienced the highest year-on-year food inflation at 51.30%, 49.69%, and 47.77%, respectively. Conversely, Kwara, Kogi, and Rivers states recorded the lowest rates at 31.39%, 32.95%, and 33.27%. Month-on-month, Yobe, Kano, and Kebbi states saw the steepest increases, while Borno, Adamawa, and Kogi recorded the slowest growth.

Core Inflation

Core inflation, which excludes volatile items like food and energy, rose to 28.75% in November 2024, a 6.36% increase from 22.38% in November 2023. The NBS highlighted significant price hikes in transportation, accommodation, and other services.

Month-on-month, core inflation decreased slightly to 1.83% from 2.14% in October. The twelve-month average core inflation rate stood at 26.64%, a 6.29% increase from the 20.35% recorded in November 2023.

Conclusion

The persistent rise in Nigeria's inflation rate underscores the challenges facing the economy in 2024. Despite aggressive monetary policy interventions, the cost of living continues to surge, driven by food and fuel prices, among other factors. Addressing these economic pressures will require multifaceted policy strategies to stabilize prices and support sustainable growth.