Nigeria’s inflation rose to 21.91% in February, and nine basis points higher compared with January’s rate of 21.82% year-year (y/y), the second consecutive rise this year.
The Consumer Price Index (CPI), which measures the rate of change in prices of goods and services, released yesterday by the National Bureau of Statistics (NBS), however, showed that the rate of rise slowed to 1.71% on a month-on-month basis (m/m), 16bps lower than the 1.87%recorded in January.
The report said: “Similarly, on a year-on-year basis, the headline inflation rate was 6.21% points higher compared to the rate recorded in February 2022, which was 15.70%.
“This shows that the headline inflation rate (year-on-year basis) increased in February 2023 when compared to the same month in the preceding year (i.e., February 2022).”
It added that the percentage change in the average CPI y/y was 19.87% or 3.15bps higher compared to 16.73% recorded in February 2022.
Food inflation
The CPI report showed that food inflation increased marginally to 24.35% against 24.32% in January y/y. The rise was due to higher prices of Oil and Fat, Bread and Cereals, Potatoes, Yam and Other Tubers, Fish, Fruits, Meat, Vegetable, and Food Products.
“On a month-on-month basis, the food inflation rate in February 2023 was 1.90%, indicating a 0.18% points decrease compared to the rate recorded in January 2023 (2.08%).” the report reads.
“The average annual rate of food inflation for the twelve-months ending February 2023 over the previous twelve-months average was 22.12%, which was a 2.44% points increase from the average annual rate of change recorded in February 2022 (19.69%).
“In February 2023, food inflation on a year-on-year basis was highest in Kwara (29.51%), Imo (27.47%), and Lagos (27.42%); while Sokoto (18.54%), Jigawa (19.67%), and Yobe (21.89%) recorded the slowest rise.
“On a month-on-month basis, however, February 2023 food inflation was highest in Yobe (3.15%), Edo (3.03%), and Ogun (2.90%); while Rivers (0.75%), Sokoto (0.89%), and Nasarawa (0.90%) recorded the lowest,” the report said.
The highest increases were recorded in prices of gas, passenger transport by air, liquid fuel, fuels, and lubricants for personal transport equipment, vehicles spare parts, solid fuel, etc.
Meanwhile, the all items less farm produce or core inflation, which excludes the prices of volatile agricultural produce, stood at 18.84% in February y/y, up by 4.83% compared with the 14.01% recorded in February 2022.
“The highest increases were recorded in prices of gas, passenger transport by air, liquid fuel, fuels, and lubricants for personal transport equipment, vehicles spare parts, solid fuel, etc,” the report said.
Elsewhere, the urban inflation rate in February y/y was 22.78%, or 6.53% points higher than the 16.25% recorded in February 2022.
“On a month-on-month basis, the urban inflation rate was 1.85% in February 2023, this was 0.13% points lower compared to January 2023 (1.98%). The corresponding twelve-month average for the urban inflation rate was 20.45% in February 2023. This was 3.16% points higher compared to the 17.29% reported in February 2022.”
Similarly, the rural inflation rate in February was 21.10% y/y, a 5.92% points rise compared with the 15.18% recorded in February 2022.
“On a month-on-month basis, the rural inflation rate in February 2023 was 1.58%, down by 0.19% points compared to January 2023 (1.77%). The corresponding twelve-month average for the rural inflation rate in February 2023 was 19.33%. This was 3.15% points higher compared to the 16.18% recorded in February 2022,” the report said.
