Nigeria's inflation rate rises to 21.91% in February-Report

Nigeria’s inflation has increased to 21.91 per cent in February compared to 21.82 per cent in January, according to the National Bureau of Statistics (NBS).

The NBS, in its CPI report for February, which was released Wednesday, attributed the 0.09 per cent increase in the headline index to an increase in the prices of food and other commodities during the review period.

Similarly, on a year-on-year basis, the headline inflation rate was 6.21% points higher compared to the rate recorded in February 2022, which was 15.70 per cent. This shows that the headline inflation rate (year-on-year basis) increased in February 2023 when compared to the same month in the preceding year (i.e., February 2022).

According to the report, the contributions of items on a class basis to the increase in the headline index are present-ed, thus: Bread and Cereal (21.67%), Actual and Imputed Rent (7.74%), Potatoes, Yam and Other Tubers (6.06%), Vegetable (5.44%) and Meat (4.78%).

“On a month-on-month basis, the percentage change in the All-Items Index in February 2023 was 1.71 per cent, which was 0.16 per cent points lower than the rate recorded in January 2023 (1.87%). This means that in February 2023, on average, the general price level was 0.16 per cent lower relative to January 2023.

“The percentage change in the average CPI for the twelve months ending February 2023 over the average of the CPI for the previous twelve months period was 19.87, showing a 3.15 per cent points increase compared to 16.73 per cent recorded in February 2022.

The report explained that, on a year-on-year basis, the urban inflation rate in February 2023 was 22.78 per cent, which was 6.53 per cent points higher compared to the 16.25 per cent recorded in February 2022. On a month-on-month basis, the urban inflation rate was 1.85 per cent in February 2023, this was 0.13 per cent points lower compared to January 2023 (1.98%). The corresponding twelve-month average for the urban inflation rate was 20.45 per cent in February 2023. This was 3.16 per cent points higher compared to the 17.29 per cent reported in February 2022.

“The rural inflation rate in February 2023 was 21.10pperccantonon on a year-on-year basis; this was 5.92 per cent points higher compared to the 15.18 per cent recorded in February 2022. On a month-on-month basis, the rural inflation rate in February 2023 was 1.58 per cent, down by 0.19 per cent points compared to January 2023 (1.77%). The corresponding twelve-month average for the rural inflation rate in February 2023 was 119.33 per cent This was 3.15 per cent points higher compared to the 16.18 per cent recorded in February 2023.”

The report noted that the food inflation rate in February 2023 was 24.35 per cent on a year-on-year basis; which was 7.24 per cent points higher compared to the rate recorded in February 2022 (17.11%).

The rise in food inflation was caused by increases in prices of Oil and Fat, Bread and Cereals, Potatoes, Yam and Other Tubers, Fish, Fruits, Meat, Vegetable, and Food Products. On a month-on-month basis, the food inflation rate in February 2023 was 1.90 per cent, which was 0.18 per cent points lower compared to the rate recorded in January 2023 (2.08%).

The average annual rate of food inflation for the twelve months ending February 2023 over the previous twelve-month average was 22.12 per cent, which was a 2.44 per cent points increase from the average annual rate of change recorded in February 2022 (19.69%).

“All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 18.84 per cent in

February 2023 on a year-on-year basis; up by 4.83 per cent when compared to the 14.01 per cent recorded in February 2022.

The highest increases were recorded in prices of Gas, Passenger Transport by Air, Liquid Fuel, Fuels, and Lubricants for Personal Transport Equipment, Vehicles Spare Parts, Solid Fuel, etc. On a month-on-month basis, the core inflation rate was 1.06 per cent in February 2023. It stood at 1.82percent in January 2023, down by 0.76 per cent points.

The average twelve-month annual inflation rate was 16.92 per cent the twelve months ending February 2023; this was 3.46 per cent points higher than the 13.46 per cent recorded in February 2023.