Nigeria’s inflation rate surged to 33.88% in October, up from 32.7% in September, according to the latest data from the National Bureau of Statistics (NBS). This marks the second consecutive month of rising inflation, signaling persistent economic challenges for the country.
The NBS’ Consumer Price Index (CPI) report, released on Friday, reveals the sharp increase in annual inflation, driven by a combination of factors that have plagued Nigeria’s economy in recent months. Inflation began to accelerate in the second half of 2023, following significant economic policy shifts by President Bola Tinubu, including the devaluation of the naira and the removal of fuel subsidies. These moves were intended to stimulate economic growth and stabilise public finances but have led to inflationary pressures.
While inflation had eased earlier in 2024, thanks to the fading effects of the naira devaluation, the situation worsened with a series of petrol price hikes that exacerbated the country’s ongoing cost-of-living crisis. As Africa’s most populous nation grapples with these economic strains, the impact on ordinary Nigerians is becoming increasingly severe.
In response to the rising inflation, the Central Bank of Nigeria has implemented five interest rate hikes this year, with further rate-setting meetings scheduled. The goal is to control inflation, but as the cost of living continues to rise, the central bank faces increasing pressure to balance its monetary policy.
With inflation continuing its upward trajectory, the Nigerian government and central bank are now confronted with the complex challenge of managing economic stability while addressing the growing financial burden on citizens.
Melissa Enoch
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