Nigeria’s inflation worsens to 27-year high, hits 28.92% in December

..As food prices skyrocketed to 33.93%

By Motolani Oseni

Nigeria’s headline inflation rate rose to 28.92 per cent in December 2023 from 28.20 per cent in November, highest in 27-year, the National Bureau of Statistics (NBS) said Monday.

Similarly, the food inflation rate in December 2023 quickened to 33.93 per cent on a year-on-year basis, which was 10.18 per cent points higher compared to the rate recorded in December 2022 (23.75 per cent).

The statistics office in its latest report released yesterday explained that the December 2023 headline inflation rate showed an increase of 0.72 per cent points when compared to the November 2023 headline inflation rate.

According to NBS, on a year-on-year basis, the headline inflation rate was 7.58 per cent points higher compared to the rate recorded in December 2022, which was 21.34 per cent.

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“This shows that the headline inflation rate (year-on-year basis) increased in December 2023 when compared to the same month in the preceding year (i.e., December 2022),” it said.

Furthermore, the bureau said on a month-on-month basis, the headline inflation rate in December 2023 was 2.29 per cent, which was 0.20 per cent higher than the rate recorded in November 2023 (2.09 per cent).

This, it said, means that in December 2023, the rate of increase in the average price level is more than the rate of increase in the average price level in November 2023.

The report, the food inflation rate in December 2023 quickened to 33.93 per cent on a year-on-year basis, which was 10.18 per cent points higher compared to the rate recorded in December 2022 (23.75 per cent).

In recent years, food prices have been on the rise across Nigeria. The situation deteriorated due to the impact of government policies such as the removal of subsidies on petrol, among others.

In July 2023, Mr Tinubu declared an immediate State of Emergency on food insecurity to tackle the increase in food prices.

He also directed that “all matters pertaining to food & water availability and affordability, as essential livelihood items, be included within the purview of the National Security Council.”

The bureau in its inflation report, however, pointed out that the contributions of items on the divisional year-on-year level to the increase in the headline index are food & non-alcoholic beverages (14.98 per cent), housing water, electricity, gas & other fuel (4.84 per cent), clothing & footwear (2.21 per cent), and transport (1.88 per cent).

Others are furnishings & household equipment & maintenance (1.45 per cent), education (1.14 per cent), health (0.87 per cent), miscellaneous goods & services (0.48 per cent), restaurant & hotels (0.35 per cent), alcoholic beverage, tobacco & kola (0.31 per cent), recreation & culture (0.20 per cent) and communication (0.20 per cent).

The report said the percentage change in the average CPI for the twelve-month ending December 2023 over the average of the CPI for the previous twelve-month period was 24.66 per cent, showing a 5.81 per cent increase compared to 18.85 per cent recorded in December 2022.

Commenting on the food inflation rate in December 2023 which stood at 33.93 per cent on a year-on-year basis, the NBS stated that the rise in food inflation was caused by increases in prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, meat, fruit, milk, cheese, and egg.

“On a month-on-month basis, the Food inflation rate in December 2023 was 2.72 per cent, this was 0.30 per cent higher compared to the rate recorded in November 2023 (2.42 per cent),” it said.