Nigerian inflation rises to nearly 30% during the course of January as food prices lead the surge

NIGERIA'S inflation rose to 29.9% during the course of January this year from 28.92% recorded in December 2023 with rising food prices being the main catalyst behind the surge according to data just released by the National Bureau of Statistics (NBS).

In its latest Consumer Price Index, the NBS revealed that the figure is 0.98 percentage points higher when compared with the 28.92% recorded in December 2023. Similarly, NBS said, on a year-on-year basis, the headline inflation rate was 8.08 percentage points higher compared with the rate recorded in January 2023, which was 21.82%.

Furthermore, it added that on a year-on-year basis, the headline inflation rate in January 2024 was 8.08% higher than the rate recorded in January 2023 at 21.82%. In addition, the report said, 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 at 2.29%.

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. Also, the report said the increase in the headline index for January 2024 on a year-on-year basis and month-on-month basis was attributed to the increase in some items in the basket of goods and services at the divisional level.

It said these increases were observed in food and non-alcoholic beverages, housing, water, electricity, gas and other fuel, clothing and footwear and transport. Other areas affected include furnishings, household equipment and maintenance, education, health, miscellaneous goods and services, restaurants and hotels, alcoholic beverages, tobacco and kola, recreation and culture and communication.

In addition, the report said the food inflation rate in January 2024 increased to 35.41% on a year-on-year basis, which was 11.10% higher compared with the rate recorded in January 2023 at 24.32%. Apparently, this rise in food inflation on a year-on-year basis was caused by increases in the prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, meat, fruit, coffee, tea and cocoa.

According to the NBS, on a month-on-month basis, the food inflation rate in January was 3.21%, which was a 0.49% increase compared with the rate recorded in December 2023 at 2.72%.  Its report read: “The rise in food inflation on a month-on-month basis was caused by an increase in the average prices of potatoes, yam and other tubers, bread and cereals, fish, meat, tobacco and vegetables.

“All items less farm produce and energy or core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 23.59% in January on a year-on-year basis. This increased by 4.71% compared with the 18.88% recorded in January 2023."

Apparently the highest increases were recorded in prices of passenger transport by road, medical services, actual and imputed rentals for housing, pharmaceutical products, accommodation service and passenger transport by air. According to the NBS on a month-on-month basis, the core inflation rate was 2.24% in January 2024.