Inflation hits 21.34%, food rate increases in December 2022

Recent report published by the National Bureau of Statistics revealed that Nigeria’s headline inflation rate in December 2022, eased to 21.34% compared to November 2022 headline inflation rate which was 21.47%.

Looking at the trend, December 2022 inflation rate showed a decline of 0.13% when compared to November 2022 inflation rate. However, on a year-on-year basis, the headline inflation rate was 5.72% points higher compared to the rate recorded in December 2021, which was (15.63%).

This shows that the headline inflation rate increased in the month of December 2022 when compared to the same month in the preceding year (i.e., December 2021).

On a month-on-month basis, the percentage change in the All Items Index in December 2022 was 1.71%, which was 0.32% higher than the rate recorded in November 2022 (1.39%). This means that in the month of December 2022, the general price level was 0.32% higher relative to November 2022.

The percentage change in the average CPI for the twelve months ending December 2022 over the average of the CPI for the previous twelve months period was 18.85%, showing 1.89% increase compared to the 16.95% recorded in December 2021.

”On a month-on-month basis, the percentage change in the all items index in December 2022 was 1.71 per cent which is 0.32 per cent higher than the rate recorded in November 2022 of 1.39 per cent.

”This means that in the month of December 2022, the general price level was 0.32 per cent higher relative to November 2022.

”The increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.

”This is especially in food and Non-Alcoholic Beverages, Transport and Miscellaneous Goods and Services,” the report said.

According to the report, food inflation rate in December 2022 was 23.75 per cent on a year-on-year basis; which was 6.38 per cent higher compared to the 17.37 per cent rate recorded in December 2021.

The report indicated that the rise in food inflation was due to increases in the prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, and food products.

”On a month-on-month basis, the food inflation rate in December was 1.89 per cent, this was 0.49 per cent higher compared to the 1.40 per cent rate recorded in November 2022.

”This increase was attributed to increase in prices of some food items like oil and fat, fish, potatoes and tubers, bread and cereals, and fruits.

”The urban inflation rate was 22.01 per cent. This was 5.85 per cent higher compared to the 16.17 per cent recorded in December 2021.

”On a month-on-month basis, the urban inflation rate was 1.80 per cent in December 2022, 0.31 per cent higher compared to 1.50 per cent rate in November 2022.

”The corresponding twelve month average for the urban inflation rate was 19.38 per cent in December 2022.

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”This was 1.86 per cent higher compared to the 17.52 per cent reported in December 2021,” the report said.

The report said the rural inflation rate in December 2022 was 20.72 per cent on a year-on-year basis, 5.61 per cent higher compared to the 15.11 per cent recorded in December 2021.

It said that on month-on-month basis, the rural inflation rate in December 2022 was 1.63 per cent up by 0.33 per cent compared to 1.30 per cent rate of November 2022.

”The corresponding twelve-months average for the rural inflation rate in December 2022 was 18.34 per cent.

”This was 1.94 per cent higher compared to the 16.40 per cent recorded in December 2021,” the report said.