Nigeria’s inflation soars as food prices increase

Nigeria’s inflation hit 16.47 per cent (year-on-year) in January, and that the increase was 0.71 per cent higher than 15.75 per cent recorded in December 2020, according to latest statistics released by the National Bureau of Statistics (NBS).

The report stated that increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index.

According to the report, on a month-on-month basis, the headline index increased by 1.49 per cent in January, which was 0.12 per cent lower than the 1.61 per cent recorded in December 2020.

“The percentage change in the average composite CPI for the 12 months period ending January over the average of the CPI for the previous 12 months period was 13.62 per cent.

“The urban inflation rate increased by 17.03 per cent (year-on-year) in January from 16.33 per cent recorded in December 2020, while the rural inflation rate increased by 15.92 per cent in January from 15.20 per cent in December,” the report noted.

The NBS said on a month-on-month basis, the urban index rose by 1.52 per cent in January, down by 0.13 per cent when compared to the rate recorded in December.

It added that the rural index also rose by 1.46 per cent in January, down by 0.12 per cent compared to the rate that was recorded in December (1.58 per cent).

According to NBS, the corresponding 12 month year-on-year average percentage change for the urban index is 4.23 per cent in January.

This, it said, was higher than the 13.86 per cent reported in December, while the corresponding rural inflation rate in January was 13.04 per cent compared to 12.67 per cent recorded in December.

The report said the composite food index rose by 20.57 per cent in January compared to 19.56 per cent in December.

“The ‘All items less farm produce’ or core inflation, which excludes the prices of volatile agricultural produce stood at 11.85 per cent in January, up by 0.48 per cent when compared with 11.37 per cent recorded in December.

For state profiles, the report said for the month under review, all items inflation on a year-on-year basis was highest in Kogi at 21.38 per cent, Oyo 20.17 per cent and Bauchi 19.52 per cent.

Meanwhile, Kwara at 13.96 per cent, Abuja 12.96 per cent and Cross River at 12.22 recorded the slowest rise in headline Year-on-Year inflation.

On a month-on-month basis, however, January’s all items inflation was highest in Oyo at 4.28 per cent, Ebonyi 3.95 per cent and Lagos 3.33 per cent.

However, Abuja, Edo and Cross River recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).

Meanwhile Akwa Ibom, which stood at 0.25 per cent and Bayelsa at 0.13 per cent, recorded the slowest rise with Edo recording price deflation or negative inflation.