Nigeria’s inflation rate has surged to 32.7% in September, following a brief two-month decline, according to data released yesterday by the National Bureau of Statistics (NBS).

The Consumer Price Index (CPI), which tracks the rate of change in the prices of goods and services, rose from 32.15% in August. The year-on-year increase is even more pronounced, with inflation jumping from 26.72% in September 2023 to 32.7% in the same month this year.

The inflationary pressures, driven by rising food and energy costs, come as a blow to hopes of a reduction in Nigeria’s Monetary Policy Rate (MPR). The upward trend is attributed to rising prices of essential goods, including grains, yams, cereals, and oils.

Food inflation, in particular, rose to 37.77% in September, compared to 30.64% the previous year. On a monthly basis, food inflation climbed to 2.64% from 2.37% in August.

Core inflation, which excludes volatile agricultural produce, also saw a sharp increase, reaching 27.43% year-on-year in September, up from 21.84% the previous year. The largest price hikes were observed in housing, transportation, and medical services.

Dr. Muda Yusuf, Director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), expressed concern over the resurgence of high inflationary pressures after a brief period of relief. He attributed the rise to a combination of factors, including the depreciating naira, fuel price hikes, and supply chain disruptions.

Yusuf urged the government to address the underlying issues driving inflation, including energy costs, transportation, and security concerns, and to prioritise policies that support domestic production.

These edits focus on improving c