Nigeria’s Inflation Rate Rises to 15.63%
Nigeria’s inflation rate rose to 15.63% in December 2021 from 15.40% recorded in November as the food index jumps, according to a report from the National Bureau of Statistics. This reverses 8 consecutive months downward trend recorded since April 2021.
According to a report released today in Abuja, the consumer price index, (CPI) which measures inflation increased by 15.63 percent year-on-year in December 2021. This translates to 0.13 percent points lower than the rate recorded in December 2020 (15.75) percent. This is showing a slowing down in the rate when compared to the corresponding period of 2020.
Headline inflation had expanded for 19 months consecutive following supply chain disruption that swept global economic space as a result of the pandemic outbreak and resultant lockdowns in 2020.
The report shows that increases were recorded in all classification of individual consumption by purpose (COICOP) divisions that yielded the headline index.
On a month-on-month basis, the headline index increased by 1.82 percent in December 2021, NBS said this is a 0.74 percent rate higher than the rate recorded in November 2021 (1.08) percent.
Also, the percentage change in the average composite CPI for the twelve-month period ending December 2021 increased by 16.95 percent from 16.98 percent over the average of the CPI for the previous twelve-month period recorded in November 2021 down by 0.03 percent points.
The urban inflation rate increased by 16.17 percent year-on-year in December 2021 from 16.33 percent recorded in December 2020, while the rural inflation rate increased by 15.11 percent in December 2021 from 15.20 percent in December 2020.
On a month-on-month basis, the urban index rose by 1.87 percent in December 2021, up by 0.75 the rate recorded in November 2021 (1.12) percent, while the rural index also rose by 1.77 percent in December 2021, up by 0.73 the rate that was recorded in November 2021 (1.04) percent.
The twelve-month year-on-year average percentage change for the urban index is 17.52 percent in December 2021, according to NBS. This is lower than the rate reported in November 17.55 (percent), while the corresponding twelve-month (month-on-month) average percentage change for the rural index inflation rate in December 2021 stood at 16.40 percent from 16.42 percent in November 2021.
The composite food sub-index rose by 17.37 percent in December 2021 down by 2.19 percent points when compared to 19.56 percent in December 2020. This rise in the food sub-index was caused by increases in prices of Bread and cereals, Food products Meat, Fish, Potatoes, yam and other tubers, Soft drinks and fruit.
On a month-on-month basis, the food sub-index increased by 2.19 percent in December 2021, up by 1.12 percent points from 1.07 percent recorded in November 2021.
The average annual rate of change of the Food sub-index for the twelve-month period ending December 2021 over the previous twelve-month average was 20.40 percent, 0.22 percent points lower from the average annual rate of change recorded in November 2021 (20.62) percent.
