Inflation soars to record high of 21.82%

The National Bureau of Statistics (NBS) has revealed that Nigeria’s inflation returned to upward movement as it was high at 21.82 percent in January 2023.

January inflation is a new 17-year high after inflation fell for the first time in December 2022.

Prior to December, Nigeria’s inflation rate had been rising consistently for 11 months.

In its ‘Consumer Price Index’ for January 2023 released on Wednesday, NBS breakdown shows that January’s inflation rate increased by 0.47% when compared to the 21.34% recorded in the previous month.

Part of the report said: “In January 2023, the headline inflation rate rose to 21.82 percent compared to December 2022 headline inflation rate which was 21.34 percent.

“Looking at the trend, the January 2023 inflation rate showed an increase of 0.47 percent points when compared to December 2022 inflation rate.

However, on a year-on-year basis, the headline inflation rate was 6.22 percent points higher compared to the rate recorded in January 2022, which was 15.60 percent.

Read also:Petrol price rose by 29.8% in November – NBS

“This shows that the headline inflation rate (year-on-year basis) increased in the month of January 2023 when compared to the same month in the preceding year (i.e., January 2022).”

According to the NBS, there were increases in the prices of bread and cereal, actual and imputed rent, potatoes, yam and tuber, vegetables, and meat.

The food inflation surged to 24.32% in January from 23.75% recorded in December 2022, while core inflation, which excludes the prices of volatile agricultural produce stood at 19.16% in the review month compared to 18.49%.

Notably, the highest increases were recorded in prices of Gas, Liquid Fuel, Passenger Transport by Air, Vehicles Spare Parts, Fuels, and Lubricants for Personal Transport Equipment, Solid Fuel, etc.

Meanwhile, in terms of the food index, the surge in the rate was attributed to an increase in the prices of some food items like Oil and Fat, Bread and Cereals, Fish, Potatoes, Yam & Tubers, etc.

Urban inflation stood at 22.55%, showing a 6.38% increase year-on-year from January 2022. On a month-on-month basis, the urban inflation rate was 1.98% in January 2023, this was 0.17% points higher compared to December 2022 (1.80%).

Rural inflation, on the other hand, was 21.13%, a 6.08% increase/decrease from the corresponding period in 2022. On a month-on-month basis, the rural inflation rate was 1.77%, up by 0.14% points compared to December 2022 (1.63%).

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