Nigeria’s inflation continues its upward trend, rising to 27.33% in October from 26.72% in the previous month as released by the National Bureau of Statistics (NBS). This represents 0.61% points increase, reflecting higher food & fuel prices and the consistent depreciation of the Naira. The annual consumer price inflation soared by 6.24% points when compared to 21.09 recorded in the corresponding month in 2022. On a monthly basis, consumer prices rose by 1.73% in October, following a 2.1% surge in the prior month.
Food inflation rate increased to 31.52% in the month, implying 0.88% points increase from 30.64% in the previous month and 7.80% points increase compared to 23.72% points in the corresponding month in 2022. Similarly, core inflation increased to 22.58%, indicating 0.73% point and 5.12% points increase when compared to 21.84% and 17.46% in September 2023 and October 2022 respectively. In terms of contributions of items, the data revealed that food and non-alcoholic beverages contributed the highest to the price increase at 14.16% followed by housing water, electricity, gas and other fuel (4.57%), clothing and footwear (2.09%), transport (1.78%) and furnishings & household equipment & maintenance (1.37%).
Following ten consecutive months of acceleration, the battle against inflation must be intensified by the CBN. The Lagos Chamber of Commerce and Industry is concerned about the continued uptick in inflation (year-on-year), and particularly notes that it squeezes consumers’ spending & saving as well as constrain manufacturing productivity. We anticipate economic agents will deploy strategies that will mitigate inflationary pressures.
The Chamber recommends that the government focus its efforts on ways to boost confidence and attract FDIs. The LCCI also implores the government to address the challenges inhibiting domestic production and ease the bottlenecks to the distribution of goods within the country.
Further, the Chamber urges the government to continue to address the problems of insecurity and other factors affecting agriculture productivity in the country to improve food supply. Finally, the CBN should prioritize the stability of the country’s currency and adopt the right policy mix to ensure price stability.
DR CHINYERE ALMONA, FCA
LAGOS CHAMBER OF COMMERCE & INDUSTRY
16 NOVEMBER 2023