Nigeria’s Inflation Rate Spikes to 21.82% as Economy Hibernates
Nigeria’s headline inflation rate accelerated by 47 basis points in January to 21.82 per cent year on year, according to consumer price index data released by the statistics office.
The local economy has hibernated as Nigerian banks shut their doors against customers seeking to make withdrawal from their respective accounts as new nnaira notes remained scarce. In Nigeria, banks remains one of the largest spenders, apart from government, that drive economic growth.
The latest reading indicates a reversal of a slowdown reported in December 2022. Today, the National Bureau of Statistics reported a 13 basis points decline in headline inflation in December, from 12.47% to 21.34% year on year.
The figure for January is 52bps higher than Bloomberg’s median consensus estimate of 21.30%. NBS data shows that n a month-on-month basis, headline inflation increased by 15bps to 1.87% versus a 1.71% month-on-month jump reported in December
According to the statistics office, food inflation increased to its highest level since October 2005 when it reached 24.56% year on year, rising by 56 basis points to 24.32% in January from 23.75% in December.
The report indicates that a heavy surge in food inflation was triggered by higher prices of Bread and cereal, Oil and Fat, Potatoes, Yam and Other Tubers, Fish, Vegetables, Fruits, Meat, and Food Products.
As a result, on a month-on-month basis, food inflation increased by 2.08%, relative to the 1.89% m/m recorded in the previous month. Similarly, the core inflation rose by 66 basis points to 19.16% from 18.49 in December – its highest point since January 2007 when it settled at 19.34% year on year.
Pressures were most significant in prices of Gas, Liquid Fuel, Passenger Transport by Air, Vehicles Spare Parts, Fuels, Lubricants for Personal Transport Equipment, Solid Fuel, etc.
When compared to the previous month figure, the core index advanced by 49 basis points to 1.82% month on month in January 2023. # Nigeria’s Inflation Rate Spikes to 21.82% as Economy Hibernates