Hot SourceJames Emejo in Abuja and Dike Onwuamaeze in Lagos
The Consumer Price Index (CPI), which measures the rate of change in prices of goods and commodities eased to18.02 per cent in September, from 20.12 per cent in the preceding month, National Bureau of Statistics (NBS) said yesterday.
Year-on-year, headline inflation stood at 14.68 per cent, lower than 32.70 per cent in September 2024.
According to the CPI report for the month under review, which was released by the statistical agency, the 2.1 per cent drop in inflation followed moderation in food and energy prices.
Centre for the Promotion of Private Enterprise (CPPE) welcomed the continued moderation in inflation, describing it as a significant indicator of improving macroeconomic conditions and policy traction.
Chief Executive Officer of CPPE, Dr. Muda Yusuf, however, stated that the cost-of-living crisis remained acute, particularly for low- and middle-income households.
The moderation in prices also came at a period of relative stability in Foreign Exchange (FX).
Month-on-month, inflation stood at 0.72 per cent in September, lower than 0.74 per cent in August.
Year-on-year, food inflation stood at 16.87 per cent in September, compared to 37.77 per cent in the corresponding period of 2024.
NBS, however, explained that the significant decline in the annual food inflation figure was technically due to the change in the base year.
Month-on-month, the food index inflation was -1.57 per cent, down from 1.65 per cent in August.
The decline was attributed to the rate of decrease in the average prices of maize, grains, garri, beans, millet, potatoes, onions, eggs, tomatoes, fresh pepper, among others.
The “All items less farm produces and energy” or core inflation, which excludes the prices of volatile agricultural produces and energy, stood at 19.53 per cent, year-on-year in September, compared to 27.43 per cent recorded in September 2024.
Month-on-month, core inflation stood at 1.42 per cent in September, compared to 1.43 per cent in August.
Urban inflation dropped to 17.50 per cent, year-on-year, compared to the 35.13 per cent recorded in September 2024.
Month-on-month, the index stood at 0.74 per cent, compared to 0.49 per cent in August.
Similarly, rural inflation dropped to 18.26 per cent on a year-on-year, compared to 30.49 per cent recorded in September 2024. On a month-on-month basis, the rural index was 0.67 per cent, compared to 1.38 per cent in August.
At state level, year-on-year, headline inflation was highest in Adamawa (23.69 per cent), Katsina (23.53 per cent), and Nasarawa (22.29 per cent), while Anambra (9.28 per cent), Niger (11.79 per cent), and Bauchi (12.36 per cent) recorded the lowest rise in prices.
Month-on-month, the highest price increases were recorded in Zamfara (9.36 per cent), Adamawa (8.15 per cent), and Nasarawa (7.49 per cent), while Niger (-8.14 per cent), Oyo (-5.56 per cent), and Bayelsa (-4.61 per cent) recorded decline.
Year-on-year, food inflation was highest in Ekiti (28.68 per cent), Rivers (24.18 per cent), Nasarawa (22.74 per cent), while Bauchi (2.81 per cent), Niger (8.38 per cent), and Anambra (8.41 per cent) recorded the slowest rise in prices.
On a month-on-month basis, the food index was highest in Zamfara (15.62 per cent), Ekiti (12.77 per cent), Sokoto (12.55 per cent), while Akwa Ibom (-12.97 per cent), Borno (-12.95 per cent), and Cross River (-10.36 per cent) recorded decline in prices of food.
In a policy brief titled, “Sustaining Nigeria’s Disinformation Trajectory and Tackling Cost Pressure,” Yusuf stated, “The sustained disinflation trend is a welcome development and a sign of improving macroeconomic fundamentals.
“However, the cost-of-living crisis remains acute, particularly for low- and middle-income households.
“The next phase of reform must, therefore, prioritise welfare-focused and cost-reduction measures that deliver tangible relief to citizens.”
He also said business confidence was rising, but consumer confidence remained fragile.
According to him, policies that would “enhance productivity, stabilise prices, and reduce the structural cost of doing business will not only strengthen the disinflation trajectory but also foster inclusive and sustainable economic recovery.”
He added that with consistency, coordination, and structural reforms, “Nigeria can achieve a stable single-digit inflation rate over the medium term and anchoring growth, improving welfare, and restoring confidence in the economy.”
Yusuf, however, said while the disinflation trajectory was commendable, inflation levels remained high and continued to erode household purchasing power, undermine consumer confidence, and weaken real incomes.
He advised that the gains achieved so far must be consolidated through decisive and well-targeted policy actions.
Yusuf attributed the declining inflationary pressure to increased food supply during the harvest season, improved exchange rate stability and macroeconomic policy improvements, among other factors.
He said, “Tighter monetary policy, reduced fiscal leakages, and better coordination between fiscal and monetary authorities have contributed to easing inflationary pressures.
“These factors collectively explain the progress made on price moderation, though the underlying structural issues that drive cost-push inflation remain significant.”
He added that despite the moderation, inflation had remained high in key consumption and production sectors, like food and agriculture, transport and logistics, energy and utilities, housing, education, and healthcare.
“Collectively, these sectors account for almost 90 per cent of household expenditure, magnifying their impact on the overall inflation trajectory,” Yusuf said.
