Nigeria's Inflation Slows To 15.60% in January-NBS

Nigeria’s inflation rate has dropped to 15.60 per cent compared to the 15.63 per cent recorded in December 2021, according to the National Bureau of Statistics (NBS).

The Statistician-General of the Federation, Dr Simon Harry who revealed this at a press briefing in Abuja on Tuesday said

the country’s inflation fell by 0.87 per cent year on year from the 16.47 per cent recorded in January 2021.

“This shows that headline inflation rate slowed down in January when compared to the same month in the previous year. Increases were recorded in all COICOP divisions that yielded the Headline index,” the NBS boss said.

On a month-on-month basis, the headline index, inclusive of items with volatile prices like food and fuel, increased to 1.47 per cent in January 2022, which is 0.34 per cent points lower than the 1.82 per cent recorded in December 2021.

According to Dr Harry, this rise in the food index was caused by increases in prices of bread and cereals, food products potatoes, yam and other tubers, soft drinks, oils and fats and fruit.

He added that on a month-on-month basis, the food sub-index increased by 1.62 per cent in January 2022, down by 0.57 per cent points from 2.19 per cent recorded in December 2021.

The NBS said The average annual rate of change of the Food sub-index for the twelve months ending January 2022 over the previous twelve-month average was 20.09 per cent, 0.31 per cent points from the average annual rate of change recorded in December 2021 (20.40) per cent.

“The urban inflation rate increased to 16.17 per cent year-on-year in January 2022 from 17.03 per cent recorded in January 2021, while the rural inflation rate increased to 15.06 per cent in January 2022 from 15.92 per cent in January 2021.

“On a month-on-month basis, the urban index rose to 1.53 per cent in January 2022, down by 0.34 per cent points from 1.87 per cent the rate recorded in December 2021.

“The rural index also rose to 1.42 per cent in January 2022, down by 0.35 per cent points from 1.77 per cent of the rate recorded in December 2021″.

Dr Harry further explained that “the eight months declining trajectory on the inflation rate in Nigeria was broken by the December 2021 Headline Inflation of 15.63 per cent, year-on-year. This was a slight increase of 0.23% points over the November 2021 figure of 15.40 per cent. As reported last, the change in the declining trend might have been caused by the increase in prices of goods and services as a result of the upsurge in their demand during the festive season”.

He, however, noted that the rural inflation rate increased by 15.06 per cent in January 2022 from 15.92 per cent in January 2021, which was lower by 0.86 per cent points, adding that on a month-on-month basis, the urban index rose by 1.53 per cent in January 2022, which was down by 0.34 per cent points from 1.87 per cent, being the rate recorded in December 2021.

“The rural index also rose by 1.42 per cent in January 2022, which was down by 0.35 per cent points from 1.77 per cent the rate recorded in December 2021. The corresponding twelve-month year-on-year average percentage change for the urban index was 17.44 per cent in January 2022. This was lower than the 17.52 per cent reported in December 2021. Rural inflation rate in January 2022 was 16.31 per cent, compared to 16.40 per cent recorded in December 2021”, he added.

“This rise in the food index was caused by increases in prices of Bread and cereals, Food products such as Potatoes, yam and another tuber, Soft drinks, Oils and fats, and fruits. On a month-on-month basis, the food sub-index increased by 1.62 per cent in January 2022, which was down by 0.57 per cent points from 2.19 perc\ent recorded in December 2021. The ‘’All items less farm produce’’, he said.