The struggle for Nigerians to afford basic necessities intensifies as food inflation reached 32.84% in November, according to the National Bureau of Statistics.
The surge in headline inflation to 28.20% further exacerbates the economic challenges. Kogi, Kwara, and Rivers experience the highest food inflation rates at 41.29%, 40.72%, and 40.22% respectively.
The report attributes the rise in food prices to increases in the costs of bread, cereals, oil, fat, potatoes, yams, fish, fruits, meat, vegetables, coffee, tea, and cocoa.
The month-on-month food inflation rate rose to 2.42% in November, marking a 0.51% increase from October.
Notably, Bauchi, Borno, and Jigawa recorded relatively lower food inflation rates at 26.14%, 27.34%, and 27.63% respectively.
However, the overall inflation rate in Nigeria reached an 18-year high in November, escalating to 28.20%.
The inflation surge, driven mainly by the soaring food prices, contradicts the Central Bank of Nigeria’s claim of a slowdown in month-on-month inflation.
Factors such as the removal of fuel subsidies and the foreign exchange rate unification policy are implicated in the recent inflationary trend.
The World Bank underscores the impact on the poor and vulnerable, with inflation contributing to increased poverty rates from 40% in 2018 to 46% in 2023.
The bank advocates for targeted cash transfers and a comprehensive approach, combining fiscal and monetary policies, to alleviate the situation.
The long-term outlook suggests that reforms may lead to higher growth and lower inflation, offering a glimpse of hope for poverty reduction from 46% in 2024 to 44% in 2026.
However, accelerated monetary policy tightening is crucial for inflation to decline in 2024 and beyond, as highlighted by the World Bank and echoed by the CBN Governor, Olayemi Cardoso.
