Updated: At 21.34%, Nigeria’s Inflation Sees First Drop In 11 Months

The National Bureau of Statistics (NBS) has disclosed that inflation rate eased to 21.34 per cent in December 2022, down from 21.47 per cent recorded in November last year.

According to the report released on Monday, the drop is put at 0.13 per cent month-on-month, however, the 21.34 per cent inflation rate last month is 5.72 per cent points higher compared to the 15.63 per cent rate recorded in December 2021.

In Urban areas, NBS reported: “On a year-on-year basis, in the month of December 2022, the urban inflation rate was 22.01%, this was 5.85% higher compared to the 16.17% recorded in December 2021.

“On a month-on-month basis, the urban inflation rate was 1.80% in December 2022, this was 0.31%
higher compared to November 2022 (1.50%).

“The corresponding twelve-month average for the urban inflation rate was 19.38% in December 2022. This was 1.86% higher compared to the 17.52% reported in December 2021.”

In the report, it was learnt that the rural inflation closed December 2022 with 20.72 per cent on a year-on-year basis: “this was 5.61% higher compared to the 15.11% recorded in December 2021. On a month-on-month basis, the rural inflation rate in December 2022 was 1.63%, up by 0.33% compared to November 2022 (1.30%).

“The corresponding twelve-month average for the rural inflation rate in December 2022 was 18.34%. This was 1.94% higher compared to the 16.40% recorded in December 2021.”

Food and All Items Inflation Rates

On a year-on-year basis, bread, and yam, contributed to the increase in food inflation, which ended December at 23.75 per cent. When compared to the 17.37 per cent recorded in 2021, it was 6.38 per cent points higher.

“The rise in the food inflation was caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other tubers, Fish, Food Product n.e.c,” the report reads.

It added that: “On a month-on-month basis, the food inflation rate in December was 1.89%, this was 0.49% higher compared to the rate recorded in November 2022 (1.40%). This increase was attributed to the increasing prices of some food items like Oil and Fat, Fish, Potatoes & Tubers, Bread & Cereals, and Fruits etc.”

For the core inflation, NBS said prices of Gas, Liquid fuel, drove the month-on-month core inflation up: “The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 18.49% in December 2022 on a year-on-year basis; up by 4.62% when compared to the 13.87% recorded in December 2021.

“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.”

States with high and low cases

All Items Inflation

• 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%). On a month-on-month basis, December 2022 recorded the highest increases in Oyo (3.48%), Abuja (3.05%), Sokoto (2.58%)
• 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, Ebonyi (0.11%), Ekiti (0.68%) and Nasarawa (0.70%) recorded the slowest rise in 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%). On a month-on-month basis, food inflation was highest in Sokoto (3.38%), Oyo (3.10%) and Kaduna (2.97%).
• 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, Nasarawa (0.06%), Osun (0.70%) and Kogi (0.76%) recorded the slowest rise in month-on-month inflation.