. Rate fuelled by galloping food prices
The consumer price index (CPI), which measures the rate of increase in the price of goods and services (inflation), rose to 15.63% in December 2021.
Latest report released yesterday by the National Bureau of Statistics (NBS), showed that the rate is 0.23% higher than the 15.40% recorded in November 2021.
This is the first increase in eight months, mostly pushed by galloping food prices, which the NBS attributed to increases in the prices of goods and services driven by increased demand during the month under review, being a festive season.
Earlier, the Statistician-General of the Federation, Dr. Simon Harry, during a news conference in Abuja, however noted that the 15.63% year-on-year rate “is a decline when compared to the corresponding month in 2020 which recorded 15.75%.”
The report showed increases were recorded in all Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the headline index.
It reads: “On month-on-month basis, the Headline index increased by 1.82 percent in December 2021 — this is 0.74 percent higher than the rate recorded in November 2021 (1.08) percent.
“The percentage change in the average composite CPI for the twelve-month period ending December 2021 increased by 16.95 percent from 16.98 percent over the average of the CPI for the previous twelve-month period recorded in November 2021 down by 0.03 percent points.”
“In December 2021, all items inflation on year-on-year basis was highest in Ebonyi (18.71%), Kogi (18.37%) and Bauchi (17.81%), while Kwara (12.32, Edo (13.46%) and Cross River (13.93%) recorded the slowest rise in headline year-on-year inflation,” the report reads.
“On month-on-month basis, the highest increases were recorded in Ebonyi (4.01%), River (3.41%) and Taraba (3.28%), while Jigawa (0.56%) recorded the slowest rise with Cross River and Kaduna recording price deflation or negative inflation (general decrease in the price level).
Food inflation rose to 17.37% in December from 17.21% in November, caused by increases in the price of bread and cereals, food products, meat, fish, potatoes, yam and other tubers, soft drinks and fruits.
According to the CPI report, food inflation rose to 17.37% in December from 17.21% in November, caused by increases in the price of bread and cereals, food products, meat, fish, potatoes, yam and other tubers, soft drinks and fruits.
The report continued: “In December 2021, food inflation on a year-on-year basis was highest in Kogi (22.82%), Enugu (20.65%) and Lagos (20.27%), while Edo (13.24%), Kaduna (13.53%) and Sokoto (14.82%) recorded the slowest rise.
“On month-on-month basis, December 2021 food inflation was highest in Cross River (4.09%), Akwa Ibom (3.88%) and River (3.79%), while Nasarawa (0.21%), Jigawa (0.39%) recorded the slowest rise in inflation on month-on-month with Kaduna recording price deflation or negative inflation (general decrease in the price level of food or a negative food inflation rate).”
Also, core inflation, which excludes the prices of agricultural items, increased to 13.87% in December against 13.85% in November.
The highest increases were recorded in prices of gas, liquid fuel, wine, actual and imputed rentals for housing, narcotics, tobacco, garments, shoes and other footwear and clothing materials, other articles of clothing and clothing accessories.