Inflation Rate Drops to 21.34% in Nigeria
Down by 13 basis points, Nigeria’s headline inflation eased for the first time in 12 months, settling at 21.34% year on year in December 2022 from 21.47% in the previous month, in line with analysts’ expectations, a statistic office said on Monday.
MarketForces Africa reported that Afrinvest estimated 30 basis points decline in the nation’s consumer price index (CPI) for December 2022. The first slowdown recorded in about 12-month despite increased pressures on energy costs in the country.
Nigeria’s investment banking firm, Afrinvest, predicted that favourable base effects will bring inflation uptrend down despite a sharp increase in demand usually experienced during the festive season.
Late in 2022, petrol pump prices spiked strongly across fuel stations and food production levels plummeted. This development came in addition to higher prices on goods and services during the yuletide plus an increase in holiday spending.
Nigeria’s statistics bureau said in the report that on a month-on-month basis, headline inflation increased by 32 basis points to 1.71% compared with 1.39% in November.
According to the National Bureau of Statistics, the report shows that food inflation moderated by 37 basis points to 23.75% versus 24.13% in the preceding month. The slowdown in food inflation was despite the increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other tubers, Fish and Food Products.
On a month-on-month basis, food inflation settled at 1.89%, relative to the 1.40% m/m recorded in November.
Elsewhere, the core inflation increased by 25 basis points to 18.49% year on year, from 18.24 a month earlier. Market analysts note that pressures were significant in prices of Gas, Liquid fuel, Passenger transport by Air, vehicle spare parts, Fuels and lubricants for personal transport equipment, Solid fuel etc.
However, compared to the previous month, the core index eased by 34 basis points to 1.33% m/m in December 2022 versus 1.67% in November 2022. # Inflation Rate Drops to 21.34% in Nigeria
