The National Bureau of Statistics (NBS) has reported a significant rise in Nigeria’s headline inflation rate, reaching a staggering 28.92% in December 2023. The latest data, disclosed in the Consumer Price Index (CPI) and Inflation Report for December, underscores the profound economic challenges confronting the nation.
Compared to the 28.20% recorded in November 2023, the inflation rate witnessed a 0.72% increase. On a year-on-year basis, the headline inflation rate for December was 7.58% higher than the corresponding period in November 2022, standing at 21.34%.
The report attributes the rise in both year-on-year and month-on-month inflation to increases in various items within the basket of goods and services. Sectors experiencing notable hikes include food and non-alcoholic beverages, housing, water, electricity, gas, clothing, footwear, transport, furnishings, household equipment, education, health, and more.
On a month-on-month basis, the headline inflation rate for December 2023 saw a 2.29% increase, marking a 0.20% uptick from November 2023 at 2.09%. This implies a faster rate of average price level increase compared to the previous month.
The report further reveals a 24.66% change in the average Consumer Price Index (CPI) for the 12 months ending December 2023 compared to the previous corresponding 12-month period. This represents a 5.81% increase from the 18.85% recorded in December 2022.
Food inflation in December 2023 rose to 33.93% on a year-on-year basis, a significant 10.18% increase from December 2022 at 23.75%. The surge is attributed to higher prices in essential items such as bread and cereals, oil and fat, potatoes, yam, other tubers, fish, meat, fruit, milk, cheese, and eggs.
While addressing core inflation, excluding volatile items, the report notes a 23.06% increase in December 2023 on a year-on-year basis, up by 4.85% compared to December 2022.
The urban inflation rate in December 2023 stood at 31.00% on a year-on-year basis, representing an 8.98% increase from December 2022. Similarly, the rural inflation rate increased by 6.38% to 27.10% on a year-on-year basis.
In analyzing states’ profiles, Kogi recorded the highest all-items inflation rate on a year-on-year basis in December, standing at 35.58%, while Borno experienced the slowest rise at 23.27%.
The report concludes that Nigeria faces a complex economic scenario marked by soaring inflation rates, particularly in essential commodities, urging policymakers to address these challenges to ensure sustainable economic stability.
Credits: NBS | News Agency of Nigeria (NAN)
