By Clara Nwachukwu
Nigeria’s headline inflation rate in December 2023, rose to 28.92% from 28.20% in November, according to the Consumer Price Index (CPI) and Inflation Report released today by the National Bureau of Statistics (NBS).
the rise is despite the declaration of a statement of emergency on food security by President Bola Tinubu in July 2023, to stem galloping food prices.
“Looking at the movement, the December 2023 headline inflation rate showed an increase of 0.72% points when compared to the November 2023 headline inflation rate,” it said.
The report continued: “On a year-on-year basis, the headline inflation rate was 7.58 per cent points higher compared to the rate recorded in December 2022, which was 21.34 per cent.
“This shows that the headline inflation rate (year-on-year basis) increased in December 2023 when compared to the same month in the preceding year (i.e., December 2022).
“Furthermore, on a month-on-month basis, the headline inflation rate in December 2023 was 2.29 per cent, which was 0.20 per cent higher than the rate recorded in November 2023 (2.09 per cent).
“This means that in December 2023, the rate of increase in the average price level is more than the rate of increase in the average price level in November 2023.”
The report put the percentage change in the average CPI for the 12-month ending December 2023 over 2022 levels at 24.66%, showing a 5.81% increase compared to 18.85% recorded in December 2022.
Food inflation
Specifically, the CPI report put the food inflation rate in December 2023 at 33.93% on a year-on-year basis. This was 10.18% points higher compared to the rate recorded in December 2022 (23.75%).
It explained that “The rise in food inflation was caused by increases in prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, meat, fruit, milk, cheese, and egg.
“On a month-on-month basis, the Food inflation rate in December 2023 was 2.72%, this was 0.30% higher compared to the rate recorded in November 2023 (2.42%).
“The rise in food inflation on a month-on-month basis was caused by a rise in the rate of increase in the average prices of oil and fat, meat, bread and cereals, potatoes, yam & other tubers, fish and milk, cheese, and egg.”
“The average annual rate of food inflation for the twelve months ending December 2023 over the previous twelve-month average was 27.96%, which was 7.02% points increase from the average annual rate of change recorded in December 2022 (20.94%).”
On a year-on-year basis, food inflation was highest in Kogi 44.73%; Kwara 41.33%; and Imo 39.54%. The rate of rise was slowest in Bauchi 27.49%; Jigawa 27.98% and Sokoto 28.72%.
On a month-on-month basis, the highest rise was witnessed in Bayelsa 4.42%; Ogun 4.11%, and Enugu 4.03%. The rate was slowest in Nasarawa 1.48%, Delta 1.65%, and Niger 1.67%.
The rise in food inflation on a month-on-month basis was caused by a rise in the rate of increase in the average prices of oil and fat, meat, bread and cereals, potatoes, yam & other tubers, fish and milk, cheese, and egg.
Urban inflation
On a year-on-year basis, in December 2023, the Urban inflation rate was 31.00%, this was 8.98% points higher compared to the 22.01% recorded in December 2022. On a month-on-month basis, the Urban inflation rate was 2.42% in December 2023, this was 0.19% points higher compared to November 2023 (2.23%).
The corresponding twelve-month average for the Urban inflation rate was 26.22% in December 2023. This was 6.83% points higher compared to the 19.38% reported in December 2022.
Rural inflation
The Rural inflation rate in December 2023 was 27.10% on a year-on-year basis; this was 6.38% higher compared to the 20.72% recorded in December 2022.
On a month-on-month basis, the Rural inflation rate in December 2023 was 2.17%, up by 0.18% points compared to November 2023 (1.99%).
The corresponding twelve-month average for the Rural inflation rate in December 2023 was 23.25%. This was 4.91% higher compared to the 18.34% recorded in December 2022.
All items less farm produce and energy (Core inflation)
The “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 23.06% in December 2023 on a year-on-year basis; up by 4.85% when compared to the 18.21% recorded in December 2022.
The highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Actual and Imputed Rentals for Housing, Passenger Transport by Air, Pharmaceutical products, Accommodation services, etc. On a month-on-month basis, the Core Inflation rate was 1.82% in December 2023. It stood at 1.53% in November 2023, up by 0.29%.
The average twelve-month annual inflation rate was 20.76% for the twelve months ending December 2023; this was 4.74% points higher than the 16.02% recorded in December 2022.
