Inflation Eases To 15.6% As Food Prices Drop

The rate at which prices of goods and services rise in Nigeria eased after the spike in December last year, easing slightly to 15.6 per cent in January 2022 according to latest data by the National Bureau of Statistics (NBS).

Food had moderated last month as the food inflation eased by 24 basis points to 17.13 per cent compared to 17.37 per cent which it was in December last year, with the Consumer Price Index moderating by three basis points to 15,6 compared to 15.63 which it was the previous month.

Notably, food inflation pressures were most significant in the prices of Bread and cereals, Potatoes, yam and other tubers, Soft drinks, Oils and fats, and fruit. On a month-on-month basis, food inflation rose by 1.62 per cent, relative to the 2.19 per cent recorded in the previous month.

On month-on-month basis, the Headline index increased to 1.47 per cent in January 2022, this is 0.34 percent points lower than 1.82 per cent recorded in December 2021. The percentage change in the average composite CPI for the twelve-month period ending January 2022 over the average of the CPI for the previous twelve-month period was 16.87 per cent, showing 0.08 per cent point from 16.95 per cent recorded in December 2021.

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 rural inflation rate increased to 15.06 per cent in January 2022 from 15.92 percent in January 2021. On a month-on-month basis, the urban index rose to 1.53 percent 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 the rate recorded in December 2021.

responding twelve-month year-on-year average percentage change for the urban index is 17.44 per cent in January 2022. This is lower than 17.52 per cent reported in December 2021, while the corresponding rural inflation rate in January 2022 is 16.31 per cent compared to 16.40 per cent recorded in December 2021.

Core inflation, which excludes the prices of volatile agricultural produce stood at 13.87 per cent in January 2022, up by 2.02 percent when compared to 11.85 percent, the rate recorded in January 2021.

On month-on-month basis, the core sub-index increased by 1.25 per cent in January 2022. This was down by 0.13 percent when compared with 1.12 per cent recorded in December 2021.

The highest increases were recorded in prices of Electricity, Liquid fuel, Wine, Tobacco, Spirit, Solid fuels, Cleaning, repair and hire of clothing, Shoes and other foot wear, Other services in respect of personal transport equipment, Other services and pharmaceutical products.

The average 12-month annual rate of change of the index was 13.33 percent for the twelve month period ending January 2022; this is 0.17 percent points higher than 13.16 percent recorded in December 2021.

Year on year, Abuja recorded the highest rise in prices with an inflation rate of 18.59 per cent followed by Kogi and Bauchi which had inflation rates of 18.28 and 17.61 per cents respectively. The slowest rise in prices were seen in Kwara, Niger and Oyo states where inflation rates of 12.94, 14.1 and 14.19 per cents were recorded respectively.

Food inflation was highest in Kogi, Enugu and Akwa Ibom with 22.61, 19.84 and 19.67 per cents respectively while it was slowest in Sokoto, Bauchi and Kaduna at 14.18, 14.63 and 15.01 per cents respectively.