Nigeria’s inflation continues rise in November; at highest since 1996

Inflation in Nigeria surged to 34.60% in November, marking the highest rate since 1996, as rising costs of goods and services continue to pressure households.

According to data released by the National Bureau of Statistics, this is an increase from October’s inflation rate of 33.8%.

Key factors driving the inflation include soaring food prices, currency depreciation, and increases in transport, housing, and utility costs. Food inflation rose to 39.93% in November, up from 39.16% in October.

Although the harvest season initially eased food prices, these gains were eroded by flooding in agricultural hubs and higher transportation costs following fuel price hikes. The lack of implementation of a 150-day waiver on food imports further contributed to rising food prices.

Economic experts anticipate that inflation in Nigeria will peak in the coming months before beginning a gradual decline. Analysts suggest that the effects of earlier policy changes, including the removal of fuel subsidies and the sharp devaluation of the naira, are starting to taper off.

Additionally, predictions indicate that the Central Bank of Nigeria may initiate a series of interest rate cuts starting in the second quarter of next year, potentially reducing the policy rate by 400 basis points to 23.5% by the end of 2025.