The National Bureau of Statistics (NBS) has released the latest Consumer Price Index (CPI) report, which shows that Nigeria’s inflation rate rose to 26.72% year-on-year in September 2023, from 25.98% in August 2023. This is the highest inflation rate recorded in the country since April 2017, when it reached 27.4%.
The CPI measures the average change in prices of goods and services consumed by people over a period of time. The NBS report indicates that the prices of food, housing, water, electricity, gas and other fuels, transport, education, health, clothing and footwear increased significantly in September 2023 compared to the same month in 2022.
The food inflation sub-index rose to 32.45% in September 2023, from 31.14% in August 2023, driven by the high cost of bread, cereals, meat, fish, oils and fats, fruits, vegetables and tubers. The food inflation sub-index accounts for over 50% of the total CPI.
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The core inflation sub-index, which excludes the prices of volatile agricultural products, increased to 19.21% in September 2023, from 18.64% in August 2023. The core inflation sub-index was affected by the rise in prices of medical services, pharmaceutical products, hospital services, dental services, motor cars, vehicle spare parts, maintenance and repair of personal transport equipment, air transport and passenger transport by road.
The urban inflation rate increased to 28.15% year-on-year in September 2023, from 27.35% in August 2023, while the rural inflation rate increased to 25.41% in September 2023, from 24.73% in August 2023.
According to the NBS report, the highest increases were recorded in prices of bread and cereals; meat; oils and fats; potatoes; yam and other tubers; fish; fruits; milk; cheese and eggs; vegetables; soft drinks; clothing materials; shoes and other footwear; furniture and furnishings; carpets and other floor coverings.
Household textiles; household appliances; glassware; tableware and household utensils; tools and equipment for house and garden; books and stationery; newspapers and periodicals; education services; medical services; pharmaceutical products; hospital services; dental services; motor cars; vehicle spare parts; maintenance and repair of personal transport equipment; air transport and passenger transport by road.
The NBS report also shows that all items inflation on a month-on-month basis was higher in September 2023 than in August 2023, increasing by 2.37% in September 2023 from 2.15% in August 2023.
The NBS attributed the persistent rise in inflation to several factors, including the insecurity situation in some parts of the country that has disrupted agricultural activities and supply chains; the depreciation of the naira against major currencies that has increased the cost of imported goods and services; the high energy costs that have affected production and transportation costs; the impact of the coronavirus pandemic on global and domestic economic activities; and the low base effect of the previous year.
The International Monetary Fund (IMF) has been pressuring the world’s poorest countries to adopt harsh austerity measures in exchange for debt relief. This means cutting spending on health, education, and social services, while raising taxes and prices on basic goods. The result? Millions of people are facing hunger, malnutrition, and disease, while the rich get richer.
This is not a new story. The IMF has been doing this for decades, imposing its neoliberal agenda on the Global South. But the COVID-19 pandemic has made things worse, as many countries have seen their economies collapse and their debts soar. The IMF claims that it is helping these countries by providing loans and grants, but the reality is that it is pushing them deeper into a debt trap.
The IMF’s policies are not only immoral, but also ineffective. They fail to address the root causes of poverty and inequality, such as unfair trade rules, tax evasion, corruption, and climate change. They also ignore the voices and needs of the people who are most affected by them. Instead of promoting democracy and human rights, they undermine them.
We cannot let this continue. We need to stand in solidarity with the people of the Global South, and demand that the IMF stop its destructive practices. We need to call for a cancellation of all illegitimate and odious debts, and a fair and transparent system of debt restructuring. We need to support alternative models of development that are based on social justice, environmental sustainability, and people’s participation.
The NBS stated that it will continue to monitor the price movements of goods and services across the country and provide timely and accurate data for policy formulation and decision making.