By Clara Nwachukwu
Nigeria’s galloping inflation, which measures the prices of goods and services, hit an all-time high of 31.70% year-on-year (YoY) in February 2024, representing a new level in 28 years.
Latest Consumer Price Index (CPI) report released today by the National Bureau of Statistics (NBS), said the new level is 1.8 percentage points above the 29.9% recorded in January.
Similarly, on a month-on-month (MoM) basis, headline inflation increased by 48bps to 3.12% compared to 2.64% in January.
The new rate was buoyed by food inflation which peaked at 37.92% YoY against 35.41% in January, which the NBS attributed to an uptick in prices of Bread and cereals, Potatoes, Yam and other Tubers, Fish, Oil and fat, Meat, Fruit, Coffee, Tea, and Cocoa.
Also, on MoM basis, food inflation rose by 3.79%, relative to the 3.21% recorded a month earlier.
The report said: “In February 2024, the headline inflation rate increased to 31.70% relative to the January 2024 headline inflation rate, which was 29.9%.
“Looking at the movement, the February 2024 headline inflation rate showed an increase of 1.8 % points when compared to the January 2024 headline inflation rate.
“On a year-on-year (YoY) basis, the headline inflation rate was 9.79% points higher compared to the rate recorded in February 2023, which was 21.91%.
“This shows that the headline inflation rate (YoY basis) increased in the month of February 2024 when compared to the same month in the preceding year (i.e, February 2023).
“Furthermore, on a month-on-month (MoM) basis, the headline inflation rate in February 2024 was 3.12%, which was 0.48% higher than the rate recorded in January 2024 (2.64%).
“This means that in February 2024, the rate of increase in the average price level is more than the rate of increase in the average price level in January 2024.”
In February 2024, food inflation on a year-on-year basis was highest in Kogi (46.32%), Rivers (44.34%), and Kwara (43.5%), while Bauchi (31.46%), Plateau (32.56%), and Taraba (33.23%) recorded the slowest rise in food inflation on a year-on-year basis.
Food inflation
On food inflation, it stated: “The food inflation rate in February 2024 was 37.92% on a YoY basis, which was 13.57% points higher compared to the rate recorded in February 2023 (24.35%).
“The rise in food inflation on a year-on-year basis was caused by increases in the prices of bread and cereals, potatoes, yam and other tubers, fish, oil and fat, meat, fruit, coffee, tea, and cocoa.
“On a MoM basis, the food inflation in February 2024 was 3.79%; this was 0.58% higher compared to the rate recorded in January 2024 (3.21%).
“In February 2024, food inflation on a year-on-year basis was highest in Kogi (46.32%), Rivers (44.34%), and Kwara (43.5%), while Bauchi (31.46%), Plateau (32.56%), and Taraba (33.23%) recorded the slowest rise in food inflation on a year-on-year basis.
“On a MoM basis, however, February 2024 food inflation was highest in Adamawa (5.61%), Yobe (5.60%), and Borno (5.60%), while Cross River (2.08%), Niger (2.56%), and Abuja (2.60%) recorded the slowest rise in food inflation on a MoM basis.”
Likewise, the core inflation (All items less farm produce and energy) surged to 25.13% YoY against 23.59% in January.
The CPI said the highest increases were recorded in prices of Passenger Transport by Road, Actual and Imputed Rentals for Housing, Medical Services, Pharmaceutical products, etc.
However, on a monthly basis, the core index slowed to 2.17% in February from 2.24% a month earlier.
