Nigeria’s headline inflation has jumped for the 11th consecutive month and hit a 30-year high, increasing the likelihood that the central bank will raise borrowing costs next year. Official data from Nigeria’s Bureau of Statistics (NBS) showed that the country’s headline inflation was 34.60%.
Food prices also rose sharply. The prices of staples like bread and yam rose as many shoppers sought more cost-effective alternatives to feed. November’s food inflation figure was 39.93%.
Core inflation, which excludes the prices of volatile agricultural products and energy, stood at 28.75% in November 2024 on a year-on-year basis, an increase of 6.36% points from the 22.38% recorded in November 2023.
The highest increases were recorded in the prices of the following items: taxi journey per drop, Bus journey intercity, Journey by motorcycle, etc. (under Passenger Transport by Road Class), Rents (Actual and Inflated Rentals for Housing Class), Meals at a local Restaurant (Accommodation Service Class), hair cut service, women’s hairdressing, etc. (Hairdressing salons & personal grooming establishments Class).
The uptick in prices will be challenging for consumers who are keen to celebrate Yuletide next week with a possible plate of jollof rice. The SBM Jollof Index, which tracks the cost of preparing a pot of jollof rice for a family of five, reports that the cost rose to ₦21,300 ($13.73), exceeding half of the country’s minimum wage.
The central bank has signalled its intention to raise interest rates to combat inflation. However, analysts warn that structural and productivity issues may limit the effectiveness of monetary policy in addressing the problem.
“November and December will see higher figures due to festive buying,” Samuel Onyekanmi, an analyst at Norrenberger said.
