Posted Tue, Dec 17, 2024 4:25 PM

Inflation Hits New High: Soars to 34.60% in November 2024

Inflation Drivers: Headline inflation recorded its third consecutive increase, driven primarily by rising costs of food, non-alcoholic beverages, and energy. Food inflation surged due to higher prices of rice, yam and other tubers, bread and cereals, while core inflation climbed due to escalating transportation and rental costs. On a month-on-month basis, the food inflation rate slightly increased to 2.98 percent, while core inflation declined to 1.83 percent and headline approximately stood at 2.64 percent. These trends reflect ongoing supply-side challenges, emphasising the pressing need to address supply bottlenecks and structural challenges driving overall cost.

Outlook: Nigeria’s inflation will remain elevated in the coming months, fueled by rising food and fuel costs, structural inefficiencies, and festive season demand. While the month-on-month Core inflation rate decline is evident, the elevated Monetary Policy Rate (MPR) at 27.5 percent will continue to tighten credit conditions, hinder investments, and stifle private sector activity.