Nigeria’s inflation in December 2022, slipped marginally to 21.34%, the first drop in 11 months, the latest consumer price index (CPI) released yesterday by the National Bureau of Statistics (NBS), has shown.
The drop, a 0.13% decline month-on-month from the 21.47% recorded in November 2022, was despite the Christmas and New Year festivities usually characterised by increases in the prices of goods and services in a move by business to maximise profit.
However the headline inflation on a year-on-year basis was 5.72% higher than the 15.36% recorded in the same period of 2021.
Similarly, food inflation, which had experienced the steepest rise in the past 11 months, fell to 23.75% in December 2022 from 24.13% recorded in the previous month.
“The rise in the food inflation was despite the increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other tubers, Fish and Food Product,” the CPI report said.
Also, the percentage change month-on-month in the All items less farm produce index or core inflation, excluding the prices of volatile agricultural produce, stood at 18.49% in December compared with 18.24% in November.
On a month-on-month basis, the core inflation rate was 1.33% in December 2022. It stood at 1.67% in November 2022, down by 0.34%.
“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,” the NBS said.
On a month-on-month basis, the percentage change in the All Items Index in December was 1.71% or 0.32% higher than the 1.39% recorded in November 2022, indicating a higher general price level.
The percentage change in the average CPI for the 12-month ending December 2022 over the average of the CPI for the previous 12-month period was 18.85, a 1.89% increase over the 16.95% recorded in the corresponding period of December 2021.
The NBS explained that “The increases were recorded in all COICOP divisions that yielded the Headline index most especially in Food & Non-Alcoholic Beverages, Transport and Miscellaneous Goods & Services.”
It also attributed the likely factors responsible for the increase in inflation rate month-on-month “to the sharp increase in demand usually experienced during the festive season, increase in the cost of production e.g. increase in energy cost, transportation cost, exchange rate depreciation etc.”
Also, on a year-on-year basis, the urban inflation rate during the period in review was 22.01%, or 5.85% above the 16.17% recorded in December 2021.
On a month-on-month basis, the urban inflation rate was 1.80% in December, 0.31% higher than the 1.50% reported a month earlier.
Also, the corresponding 12-month average for the urban inflation rate was 19.38% in December 2022, higher than the 17.52% achieved in December 2021 by 1.86%.
The rural inflation rate in December 2022 was 20.72% on a year-on-year basis, 5.61% higher than the 15.11% recorded in December 2021.
On a month-on-month basis, the rural inflation rate in December 2022 was 1.63 per cent, up by 0.33 per cent from 1.30 per cent in November 2022.
The corresponding 12-month average for the rural inflation rate in December 2022 was 18.34 per cent, 1.94 per cent higher than the 16.40 per cent recorded in December 2021.
…factors responsible for the increase in inflation rate month-on-month can be attributed to the sharp increase in demand usually experienced during the festive season, increase in the cost of production e.g. increase in energy cost, transportation cost, exchange rate depreciation etc.
All Items Inflation
According to the CPI report, in December 2022, all items inflation rate on a year-on-year basis was highest in Bauchi (23.79%), Kogi (23.35%), Anambra (23.13%), while Taraba (18.98%), Osun (19.09%) and Kwara (19.18%) recorded the slowest rise in headline year-on-year inflation.
On a month-on-month basis, however, December 2022 recorded the highest increases in Oyo (3.48%), Abuja (3.05%), Sokoto (2.58%), while Ebonyi (0.11%), Ekiti (0.68%) and Nasarawa (0.70%) recorded the slowest rise on month-on-month inflation.
Food Inflation
In December 2022, food inflation on a year-on-year basis was highest in Kwara (27.90%), Imo (26.94%) and Ebonyi (26.28%), while Sokoto (20.90%), Taraba (21.59%) and Cross River (21.71%) recorded the slowest rise in year-on-year food inflation.
On a month-on-month basis, however, December 2022 food inflation was highest in Sokoto (3.38%), Oyo (3.10%) and Kaduna (2.97%), while Nasarawa (0.06%), Osun (0.70%) and Kogi (0.76%) recorded the slowest rise on month-on-month inflation. This housing option’s main draw is its cheaper cost. First-time homebuyers and anyone looking for inexpensive housing may like houses since they are cheaper than regular residences. Mobile homes provide independence and affordability. For those who value flexibility and mobility, they can be moved easily. Visit https://www.cashhomebuyers.io/illinois/cash-house-buyers-champaign-il/.
