Yuletide Spending Pushes Inflation To 15.63% in December

For the first time in 8months, Nigeria’s inflation has recorded a slight increase to 15.63%, the National Bureau of Statistics has said.

The increase may not be unconnected to yuletide spendings by Nigerians.

The Daily Times reports that the Inflation figures had maintained a downward trend from April 2021 from 18.12 per cent to 15. 40 per cent in November 2001.

However, the NBS in its Consumer Price Index report which is released on Monday, stated that the 15.63 per cent year-on-year inflation rate was 0.23 per cent points higher than the 15.40 per cent recorded in November 2021.

The Report said, “Headline inflation for December was 15.63 per cent, while that of November was 15.40 per cent

“Core inflation for December was 13.87 per cent, while that of November was 13.85 per cent. Food inflation for December was 17.37 per cent, while 17.21 per cent was recorded for November 2021.”

The report stated further that urban inflation for December was 16.17 per cent while the November index was put at 15.92 per cent.

On the other hand, it explained that rural inflation was 15.11 per cent and 14.89 per cent in December and November 2021 respectively.

On State by State comparison, the Report said that inflation was highest in Ebonyi State with 18.71 per cent, while Kwara State was recorded as the lowest with 12.32 per cent.

On the other hand, Food inflation was highest in Kogi State with 22.82 per cent, while Edo State was the lowest with 13.24 per cent.

On the rationale behind the slight increase in inflation numbers, the Statistician-General of the federation, Mr Harry Simon said “The change in the declining trend for about eight months might have been caused by the increase in prices of goods and services as a result of an increase in their demand during the month under review, being a festive season. On a month-on-month basis, the Headline index increased by 1.82 per cent in December 2021. This is a 0.74 per cent rate higher than the rate recorded in November 2021, which was 1.08 per cent.

He added that “The Urban inflation rate increased to 16.17 per cent (year-on-year) in December 2021 from 16.33 per cent recorded in December 2020, down by 0.16 per cent points, while the rural inflation rate increased to 15.11 per cent in December 2021 from 15.20 per cent in December 2020, which was lower by 0.09 per cent points.”