Breaking News: Nigeria’s Inflation Hits 29.90 Percent In January As Prices Of Food Intensify Increase

Nigeria’s inflationary statistics keeps upward trend nearing almost 30 percent as National Bureau of Statistics (NBS) data just released showed rate standing at 29.90 percent for the month of January, 2024.

The  current rate showed an increase of 0.98 percent when compared to that of December, 2023 which was 28.92 percent.

The Food inflation rate in January 2024 was 35.41% on a year-on-year basis, which was 11.10% points higher compared to the rate recorded in January 2023 (24.32%).

Also, Urban inflation on month-on-month and year-on-year basis, topped those of rural inflation within the period under review.

The major contributors to the increase include prices of Food & Non-Alcoholic Beverages which had inflation share of 1.37 percent on month-on-month basis while on year-on-year basis it had price increase of 15.49 percent. The contributions of items on divisional level to the increase in the Headline index are as presented below:

On a year-on-year basis, the headline inflation rate was 8.08% points higher com pared to the rate recorded in January 2023, which was 21. 82%.

According to NBS, “This shows that the headline inflation rate (year-
on-year basis) increased in January 2024 when compared to the same month in the preceding year (i.
e., January 2023).

Also, from the data, on a month-on-
month basis, the headline inflation rate in January 2024 was 2.64%, which was 0.35% higher than the rate recorded in December 2023 (2.29%). This implied that in January 2024, the rate of increase in the average price level is more than the rate of increase in the average price level in
December 2023.

The percentage change in the average CPI for the twelve-month ending January 2024 over the average of the CPI for the previous twelve- month period was 25.35%,
showing a 5.99%increase compared to 19.36% recorded in January 2023.
On a year-on-year basis, in January 2024, the Urban inflation rate was 31.95%, this was 9.40%pointshigher
compared to the 22.55% recorded in January 2023. On a month-on-month ba sis, the Urban inflation rate was 2.
72% in January 2024, this was 0.30% points higher com pared to December 2023 (2. 42%).

The corresponding twelve-month average for the Urban in flation rate was 27. 01% in January 2024. This was 7.10 % points higher compared to the19.91% reported in January 2023.

The Rural inflation rate in January 2024 was 28.10% on a year-on-year basis; this was 6.97%higher compared to the 21.13% recorded in January 2023. On a month-on-month basis, the Rural inflation rate in January 2024 was 2.57%, up by 0.40% points
compared to December2023
(2.17%).

The corresponding twelve-month average for the Rural inflation rate in January 2024 was 23.85%. This was 5. 01% higher compared to the
18.84% recorded in January
2023.

The rise in Food inflation on a year-on-year basis was caused by increases in prices of Bread and cereals, Potatoes, Yam and other Tubers, Oil and fat, Fish, Meat, Fruit, Coffee, Tea, and Cocoa.

On a month-on-month basis, the Food inflation rate in January 2024 was 3.21%, this was 0.49% higher compared to the rate recorded in December 2023 (2.72%). The rise in the Food inflation on a Month-on-Month basis was caused by a rise in the rate of increase in
the average prices of Potatoes, Yam & Other Tubers, Bread and Cereals, Fish, Meat, Tobacco, and Vegetable.

The average annual rate of Food inflation for the twelve months ending January 2024 over the previous twelve-month average was 28.91%, which was a 7.38% points increase
from the average annual rate of change recorded in January 2023(21.53%).