Nigeria’s Inflation Rate Rises To 29.90%, Almost 1% Increase From December 2023

Nigeria’s average inflation rate increased to 29.90% in January 2024.

In January 2024, the headline inflation rate increased to 29.90% relative to the December 2023 headline inflation rate which was 28.92%, a report by the National Bureau of Statistics has said.

It said, “Looking at the movement, the January 2024 headline inflation rate showed an increase of 0.98% points when compared to the December 2023 headline inflation rate.

“Similarly, on a year-on-year basis, the headline inflation rate was 8.08% points higher compared to the rate recorded in January 2023, which was 21.82%. This shows that the headline inflation rate (year-on-year basis) increased in January 2024 when compared to the same month in the preceding year (i.e., January 2023).

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 (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.”

According to the report, the percentage change in the average Consumer Price Index (CPI) for the twelve-month ending January 2024 over the average of the CPI for the previous twelve-month period was 25.35%, showing a 5.99% increase compared to 19.36% recorded in January 2023.

The CPI measures the average change over time in the prices of goods and services consumed by people for day-to-day living. The construction of the CPI combines economic theory, sampling, and other statistical techniques using data from other surveys to produce a weighted measure of average price changes in the Nigerian economy.

Regarding urban inflation, the NBS noted that on a year-on-year basis, in January 2024, the Urban inflation rate was 31.95%, “this was 9.40%

points higher compared to the 22.55% recorded in January 2023”.

It continued, “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 (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.”

It noted that 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.

It said, “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 (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.

“The Food inflation rate in January 2024 was 35.41% on a year-on-year basis, which was 11.10% points higher compared to the rate recorded in January 2023 (24.32%).

“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 (2.72%). The rise in the 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% points increase from the average annual rate of change recorded in January 2023 (21.53%).”