Nigeria’s inflation rate has soared to a fresh 28-year high, surging to 34.6% in November, a significant increase from 33.9% the previous month, according to the latest data from the National Bureau of Statistics. This marks the highest inflation level since March 1996, driven by higher prices of staple foods like corn and yam, as well as escalating transport costs.
The sharp rise in inflation is largely attributed to a combination of factors, including devastating floods in northern Nigeria that destroyed crops, exacerbating food price inflation. The rise in gasoline prices has also played a significant role in pushing up transport costs, further driving inflation.
Food inflation accelerated to 39.9% in November, up from 39.2% in October, placing additional strain on households that are already grappling with high living costs. Core inflation, which excludes food and energy, also saw an increase, rising to 28.75% from 28.4% the previous month.
In an effort to curb rising prices and stabilize the currency, Nigeria’s central bank has implemented a series of aggressive interest rate hikes, raising the key rate by 875 basis points this year. The central bank’s monetary policy aims to tackle inflationary pressures and strengthen the naira, which has depreciated by 41% against the US dollar.
Looking ahead, the central bank is hopeful that inflation will begin to ease in 2025. Measures to deregulate the petroleum industry and improve security in the country’s food-producing northeast are expected to help reduce costs and alleviate pressure on consumers in the long term.
These efforts reflect a broader strategy to stabilize the economy and support Nigeria’s recovery from the ongoing inflation crisis.