Nigeria’s running rate of inflation has increased to 29.90%, according per figures released on Thursday by the statistics office. According to the National Bureau of Statistics (NBS) report, the headline inflation rate increased by 0.8% in January 2024 compared to a figure of 28.92% in December 2023.
In Africa’s most populous country, food inflation has increased to the point that yearly comparisons have surpassed 10%, further exacerbating price volatility. The headline inflation rate in January was 8.08% points higher year over year than the rate in January 2023 (21.82%), according to data from NBS, the article said.
In addition, the headline inflation rate for January 2024 was 2.64% on a month-over-month basis, which was 0.35% higher than the rate for December 2023, when it printed at 2.29%. The rate of growth, according to analysts excludes recent adjustments on the exchange rate pricing methodology which pushed naira to N1400 per US dollar in the month.
According to NBS, this indicates that the average price level will have increased at a faster pace in January 2024 than it did in December 2023. In January 2024, the average annual rate of consumer price inflation was 25.35%, which is a 5.99% increase over the 19.36% reported in January 2023.
In January 2024, the annual rate of food inflation increased by 11.01%, from 24.32% to 35.41%. The price hikes of Bread and Cereals, Potatoes, Yam and Other Tubers, Oil and Fat, Fish, Meat, Fruit, Coffee, Tea, and Cocoa were the main causes of the annual increase in food inflation.
Comparing January to previous months, the Food inflation rate in January 2024 was 3.21%, this was 0.49% higher compared to the rate recorded in December 2023 when it settled at 2.72%. The rise in Food inflation on a Month-on-Month basis was caused by a rise in the rate of increase in the average prices of Potatoes, Yam & Other Tubers, Bread and Cereals, Fish, Meat, Tobacco, and Vegetable.
The average annual rate of Food inflation for the twelve months ending January 2024 over the previous twelve-month average was 28.91%, which was a 7.38% increase from the average annual rate of change recorded in January 2023(21.53%).
URBAN INFLATION
On a year-on-year basis, in January 2024, the urban inflation rate was 31.95%, which was 9.40% points higher compared to the 22.55% recorded in January 2023. On a month-on-month basis, the urban inflation rate was 2.72% in January 2024, this was 0.30% points higher compared to December 2023 when it was 2.42%.
The corresponding twelve-month average for the urban inflation rate was 27.01% in January 2024. This was 7.10 % points higher compared to the 19.91% reported in January 2023.
RURAL INFLATION
The Rural inflation rate in January 2024 was 28.10% on a year-on-year basis; this was 6.97% higher compared to the 21.13% recorded in January 2023. On a month-on-month basis, the rural inflation rate in January 2024 was 2.57%, up by 0.40% points compared to December 2023 when it was 2.17%.
The corresponding twelve-month average for the rural inflation rate in January 2024 was 23.85%. This was 5.01% higher compared to the 18.84% recorded in January 2023
