Nigeria’s running inflation rate has accelerated to 29.90%, according to data from statistics office posted on Thursday. The National Bureau of Statistics (NBS) said in the report that in January 2024, the headline inflation surged 0.8% from 28.92% in December 2023 reading.
Food inflation surge has now crossed 10% on an annual comparison, extending price instability in Africa’s most populous nation. Data from NBS showed that on a year-on-year basis, the headline inflation rate was 8.08% points higher in January compared to the rate recorded in January 2023, which was 21.82%, the report stated.
Furthermore, on a month-on-month basis, the headline inflation rate in January 2024 was 2.64%, which was 0.35% higher than the rate recorded in December 2023 when it printed at 2.29%. The rate of growth, according to analysts excludes recent adjustments on the exchange rate pricing methodology which pushed naira to N1400 per US dollar in the month.
NBS said this means that in January 2024, the rate of increase in the average price level is more than the rate of increase in the average price level in December 2023. The average consumer price inflation for the twelve months ending January 2024 was 25.35% year on year, showing a 5.99% increase compared to 19.36% recorded in January 2023.
The Food inflation rate grew by 11.01% in January 2024 to 35.41% on a year-on-year basis from 24.32% 12 months ago. The rise in Food inflation on a year-on-year basis was caused by increases in prices of Bread and cereals, Potatoes, Yam and other Tubers, Oil and fat, Fish, Meat, Fruit, Coffee, Tea, and Cocoa.
On a month-on-month basis, the Food inflation rate in January 2024 was 3.21%, this was 0.49% higher compared to the rate recorded in December 2023 when it settled at 2.72%. The rise in Food inflation on a Month-on-Month basis was caused by a rise in the rate of increase in the average prices of Potatoes, Yam & Other Tubers, Bread and Cereals, Fish, Meat, Tobacco, and Vegetable.
The average annual rate of Food inflation for the twelve months ending January 2024 over the previous twelve-month average was 28.91%, which was a 7.38% increase from the average annual rate of change recorded in January 2023(21.53%).
URBAN INFLATION
On a year-on-year basis, in January 2024, the urban inflation rate was 31.95%, which was 9.40% points higher compared to the 22.55% recorded in January 2023. On a month-on-month basis, the urban inflation rate was 2.72% in January 2024, this was 0.30% points higher compared to December 2023 when it was 2.42%.
The corresponding twelve-month average for the urban inflation rate was 27.01% in January 2024. This was 7.10 % points higher compared to the 19.91% reported in January 2023.
RURAL INFLATION
The Rural inflation rate in January 2024 was 28.10% on a year-on-year basis; this was 6.97% higher compared to the 21.13% recorded in January 2023. On a month-on-month basis, the rural inflation rate in January 2024 was 2.57%, up by 0.40% points compared to December 2023 when it was 2.17%.
The corresponding twelve-month average for the rural inflation rate in January 2024 was 23.85%. This was 5.01% higher compared to the 18.84% recorded in January 2023. #Nigeria’s Running Inflation Hits 29.90%
