Nigeria’s headline inflation jumped to 16.47 percent in January 2021 as the coronavirus and insecurity continues to weigh on the economy.
According to the National Bureau of Statistics report released on Tuesday, the inflation rate was pushed up by galloping food prices as food inflation also rose to 20.57 per cent in January, from 19.56 per cent in December.
This is Nigeria’s highest inflation in 33 months.
Nigeria is facing its second economic recession in five years, insecurity, declining revenue due to low oil receipts and weakened naira amid rising demand for dollars.
Inflation rose to 15.75 per cent in December, its highest level in 32 months, with the 0.86 per cent month-on-month increase, marking the 16th consecutive month of its increase.
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Inflation rate was 14.89 per cent in November.
The spike in the food inflation last month was attributed to increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fruits, vegetable, fish and oils and fats.
In January, the composite food index rose by 20.57 per cent versus 19.56 per cent in December 2020.
The bureau said on a month-on-month basis, the headline index jumped by 1.49 per cent in January 2021 compared with 1.61 per cent in December 2020.
According to the agency, the percentage change in the average composite CPI for the 12 months period ending January 2021 over the average of the CPI for the previous 12 months period was 13.62 per cent as against 13.25 per cent in December 2020.
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It added that last month, the urban inflation rate increased by 17.03 per cent year-on-year in contrast to 16.33 per cent a month earlier, while the rural inflation rate rose by 15.92 per cent in January 2021 from 15.20 per cent in December 2020.
The NBS data also stated that in January 2021, all items inflation on a year-on-year basis was highest in Kogi at 21.38 per cent, Oyo at 20.17 per cent and Bauchi at 19.52 per cent, while Kwara at 13.96 per cent, Abuja at 12.96 per cent and Cross River at 12.22 per cent recorded the slowest rise in headline year-on-year inflation.
