Headline Inflation
In December 2023, the headline inflation rate rose to 28.92%, marking a 0.72%-point increase from the November 2023 rate of 28.20%. On a year-on-year basis, the December 2023 headline inflation rate was 7.58% points higher than the rate recorded in December 2022, which stood at 21.34%. This indicates a notable uptick in the year-on-year headline inflation rate for December 2023 compared to the corresponding month in the previous year, December 2022.
Moreover, in December 2023, the month-on-month headline inflation rate reached 2.29%, marking a 0.20% increase from the December 2023 rate of 2.09%. This indicates that the pace of the average price level rise in December 2023 exceeded the rate observed in November 2023.
Urban Inflation
In December 2023, the urban inflation rate experienced a year-on-year increase of 31.00%, marking an 8.98%-point rise from the 22.01% recorded in December 2022. On a month-on-month basis, the urban inflation rate for December 2023 was 2.42%, indicating a 0.19%-point increase from November 2023 (2.23%). The corresponding twelve-month average for the urban inflation rate reached 26.22% in December 2023, reflecting a significant 6.83%-point surge compared to the 19.38% reported in December 2022.
Rural Inflation
In December 2023, the rural inflation rate saw a year-on-year increase of 27.10%, marking a 6.38%-point rise from the 20.72% recorded in December 2022. On a month-on-month basis, the rural inflation rate for December 2023 was 2.17%, indicating a 0.18%-point increase from November 2023 (1.99%). The corresponding twelve-month average for the rural inflation rate reached 23.25% in December 2023, reflecting a notable 4.91%-point surge compared to the 18.34% recorded in December 2022.
Food Inflation
In December 2023, the year-on-year Food inflation rate surged to 33.93%, marking a substantial increase of 10.18% points from the rate observed in December 2022 (23.75%). The elevation in Food inflation was primarily driven by heightened prices across various categories, including Bread and cereals, Oil and fat, Potatoes, Yam, and other Tubers, Fish, Meat, Fruit, Milk, Cheese, and Eggs.
On a month-on-month basis, the Food inflation rate for December 2023 stood at 2.72%, reflecting a 0.30% uptick compared to the rate recorded in November 2023 (2.42%). This month-to-month increase in Food inflation was attributed to a rise in the rate of average price hikes for Oil and fat, Meat, Bread and Cereals, Potatoes, Yam & Other Tubers, Fish, and Milk, Cheese, and Eggs.
Core Inflation (All Items less Farm Produce and Energy)
In December 2023, Core inflation, which excludes volatile agricultural produce and energy prices, reached 23.06% on a year-on-year basis, marking a notable increase of 4.85% compared to the 18.21% recorded in December 2022. The most significant price hikes were observed in categories such as Passenger Transport by Road, Medical Services, Actual and Imputed Rentals for Housing, Passenger Transport by Air, Pharmaceutical products, Accommodation services, and more.
On a month-on-month basis, the Core Inflation rate for December 2023 was 1.82%, showing a 0.29% rise from the 1.53% recorded in November 2023. The average twelve-month annual inflation rate for the period ending December 2023 was 20.76%, reflecting a substantial increase of 4.74% points from the 16.02% reported in December 2022.
State Profiles
All Items Inflation
In December 2023, the Year-on-Year All Items inflation rate reached its peak in Kogi (35.58%), Lagos (32.33%), and Rivers (32.16%), whereas Borno (23.27%), Taraba (24.92%), and Katsina (26.52%) exhibited the least pronounced increases in Headline inflation on a Year-on-Year basis. On a Month-on-Month basis, however, the most substantial surges in inflation for December 2023 were observed in Bayelsa (3.66%), Bauchi (3.51%), and Oyo (3.45%), while Nasarawa (1.36%), Delta (1.49%), and Sokoto (1.58%) experienced the slowest rises in Month-on-Month inflation.
Food Inflation
In December 2023, Food inflation on a Year-on-Year basis peaked in Kogi (44.73%), Kwara (41.33%), and Imo (39.54%), while Bauchi (27.49%), Jigawa (27.98%), and Sokoto (28.72%) posted the most gradual increases in Food inflation on a Year-on-Year basis. Conversely, on a Month-on-Month basis for December 2023, Food inflation was most pronounced in Bayelsa (4.42%), Ogun (4.11%), and Enugu (4.03%), whereas Nasarawa (1.48%), Delta (1.65%), and Niger (1.67%) witnessed the most restrained increases in inflation.
