Key Findings

Headline Inflation

- Current Rate: 33.88% (October 2024)

- Previous Month: 32.7% (September 2024)

- Year-over-Year Increase: 6.55 percentage points (from 27.33% in October 2023)

- Monthly Change: 2.64% (up from 2.52% in September)

Food Inflation

- Current Rate: 39.16% (October 2024)

- Previous Month: 33.77% (September 2024)

- Year-over-Year Increase: 7.64 percentage points (from 31.52% in October 2023)

- Monthly Change: 2.94% (up from 2.64% in September)

Major Contributing Factors

Primary Food Categories Driving Inflation

1. Cereals and Bread

   - Guinea corn

   - Rice

   - Maize grains

2. Tubers

   - Yam varieties (Water Yam, Coco Yam)

3. Oils and Fats

   - Palm Oil

   - Vegetable Oil

4. Beverages

   - Milo

   - Lipton

   - Bournvita

Regional Analysis

Highest Food Inflation (Year-on-Year)

1. Sokoto: 52.18%

2. Edo: 46.55%

3. Borno: 45.85%

Lowest Food Inflation (Year-on-Year)

1. Kwara: 31.68%

2. Kogi: 33.30%

3. Rivers: 33.87%

Analysis

The October 2024 inflation data reveals a concerning trend in Nigeria's economy, with both headline and food inflation reaching new heights. The food inflation rate of 39.16% is particularly alarming, as it directly impacts household purchasing power and food security.

Key Implications

1. The persistent rise in food prices suggests structural issues in Nigeria's agricultural and food distribution sectors

2. Regional disparities in inflation rates indicate varying levels of economic stress across states

3. The monthly acceleration in inflation rates suggests that price pressures are not abating

Long-term Trend

The average annual food inflation rate for the twelve months ending October 2024 was 38.12%, representing an 11.79 percentage point increase from the previous year's average of 26.33%. This indicates a sustained deterioration in price stability over the medium term.