Nigeria’s Inflation Accelerates to 21.91%

Nigeria’s Inflation Accelerates to 21.91%

Nigeria’s headline inflation rate accelerated by 10 basis points in February to 21.91%, impacted by the impacts of the central bank’s failed cashless policy and increase in food prices.

In its consumer price index report, National Bureau of Statistics data shows that on a month-on-month basis, headline inflation eased by 15 basis points to 1.71% compared to 1.87% reported in January.

Following naira swap pressures which triggered issues across the economy, the headline inflation rate rose to 21.91% compared to January 2023 headline inflation rate which was 21.82%, NBS statistics said in the report.

Looking at the trend, the February 2023 inflation rate showed an increase of 0.09% points when compared to January 2023 headline inflation rate. 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 in February 2022.

The contributions of items on a class basis to the increase in the headline index are presented, thus: Bread and Cereal (21.67%), Actual and Imputed Rent (7.74%), Potatoes, Yam and Other Tubers (6.06%), Vegetable (5.44%) and Meat (4.78%).

On a month-on-month basis, the percentage change in the All-Items Index in February 2023 was 1.71%, which was 0.16% points lower than the rate recorded in January 2023 (1.87%). This means that in February 2023, on average, the general price level was 0.16% lower relative to January 2023.

The percentage change in the average CPI for the twelve months period ending February 2023 over the average of the CPI for the previous twelve months period was 19.87%, showing a 3.15% points increase compared to 16.73% recorded in February 2022.

NBS report indicates that increases were recorded in all Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the headline index.

URBAN INFLATION

On a year-on-year basis, the urban inflation rate in February 2023 was 22.78%, this was 6.53% points higher compared to 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.

RURAL INFLATION

The rural inflation rate in February 2023 was 21.10% on a year-on-year basis; this was 5.92% points higher compared to 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 food inflation rate in February 2023 was 24.35% on a year-on-year basis; which was 7.24% points higher compared to the rate recorded in February 2022 (17.11%).

The rise in food inflation was caused by increases in 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%, which was 0.18% points lower compared to the rate recorded in January 2023 (2.08%).

The average annual rate of food inflation for the 12-month ending February 2023 versus the preceding year was 22.12%, which was a 2.44% points increase from the average annual rate of change recorded in February 2022 (19.69%). #Nigeria’s Inflation Accelerates to 21.91%