Nigeria’s Inflation Falls To 21.34%, First Time In 11 Months

Nigeria’s inflation has dropped to 21.34 percent from 21.47 percent for the first time in eleven months.

The National Bureau of Statistics (NBS) said this on Monday, January 16, 2023, in its latest consumer price index (CPI) report.

The consumer price index (CPI), which measures the rate of change in prices of goods and services, eased to 21.34 percent in December 2022, down from 21.47 percent in the previous month.

But some analysts believe that respite is still far from consumers who are still battling with depressed wallet and dwindling value of the naira against foreign currencies.

They all agree that situation of life and living remain unbearable, particularly for low income earners and unemployed people.

However, on a month-on-month basis, this is the first time the inflation rate is decreasing in the last eleven months.

The latest figure, however, is still high when compared to December 2021, when inflation rate stood at 15.63 percent before dropping to 15.60 percent in January 2022.

NBS said the December 2022 inflation rate showed a decline of 0.13 percent when compared to the figure of November 2022.

“However, on a year-on-year basis, the headline inflation rate was 5.72 percent points higher compared to the rate recorded in December 2021, which was (15.63 percent).

 This shows that the headline inflation rate increased in the month of December 2022 when compared to the same month in the preceding year (i.e., December 2021),” the report reads.

“On a month-on-month basis, the percentage change in the ‘all items index’ in December 2022 was 1.71 percent, which was 0.32 percent higher than the rate recorded in November 2022 (1.39 percent).

 This means that in the month of December 2022, the general price level was 0.32 percent higher relative to November 2022.

NBS also said food inflation eased to 23.75 percent in the month under review, a decrease compared to the 24.13 percent recorded in the preceding month.

But on a year-on-year basis, the figure is 6.38 percent higher in relation to December, 2021.

“The food inflation rate in December 2022 was 23.75 percent on a year-on-year basis, which was 6.38 percent higher compared to the rate recorded in December 2021 (17.37 percent),” the report said.

“The rise in the food inflation was caused by increases in prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, food product, etc.

“On a month-on-month basis, the food inflation rate in December was 1.89 percent, this was 0.49 percent higher compared to the rate recorded in November 2022 (1.40 percent). This increase was attributed to increase in prices of some food items like oil and fat, fish, potatoes & tubers, bread and cereals, and fruits etc.”
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The report added that the average annual rate of food inflation for the twelve months ending December 2022 over the previous twelve-month average was 20.94 percent, which was a 0.53 percent points increase from the average annual rate of change recorded in December 2021 (20.40 percent).