At 29.90%, Nigeria’s Inflation Rate Hit An All-Time High

Against the backdrop of foreign exchange unification and the removal of subsidies on fuel, the inflation rate increased to 29.90 per cent in January 2024, becoming an all-time high.

The National Bureau of Statistics (NBS) in its Consumer Price Index (CPI), an index used in measuring inflation revealed that the January 2024 headline inflation rate showed an increase of 0.98percentage points when compared to the 28.92per cent it reported in December 2023 headline inflation rate.

According to NBS, on a year-on-year basis, the headline inflation rate was 8.08 percentage points higher compared to the rate recorded in January 2023, which was 21.82 percent.

The report disclosed further that on a month-on-month basis, the headline inflation rate in January 2024 was 2.64 per cent, which was 0.35 per cent higher than the rate recorded in December 2023 (2.29 percent).

“This means that in January 2024, the rate of increase in the average price level is more than the rate of increase in the average price level in December 2023.

“The percentage change in the average CPI for the twelve-month ending January 2024 over the average of the CPI for the previous twelve-month period was 25.35per cent, showing a 5.99per cent increase compared to 19.36per cent recorded in January 2023,” the report added.

On urban inflation, the report by NBS stated that “On a year-on-year basis, in January 2024, the Urban inflation rate was 31.95per cent, this was 9.40percentage points higher compared to the 22.55per cent recorded in January 2023.

“On a month-on-month basis, the Urban inflation rate was 2.72 per cent in January 2024, this was 0.30 percentage points higher compared to December 2023 (2.42 per cent).

“The corresponding twelve-month average for the Urban inflation rate was 27.01 per cent in January 2024. This was 7.10 percentage points higher compared to the 19.91 per cent reported in January 2023.”

“The Rural inflation rate in January 2024 was 28.10 per cent on a year-on-year basis; this was 6.97 per cent higher compared to the 21.13 per cent recorded in January 2023.

“On a month-on-month basis, the Rural inflation rate in January 2024 was 2.57 per cent, up by 0.40 percentage points compared to December 2023 (2.17 per cent).

“The corresponding twelve-month average for the Rural inflation rate in January 2024 was 23.85 per cent. This was 5.01 per cent higher compared to the 18.84 per cent recorded in January 2023,” NBS stated for rural inflation.

NBS on food inflation, said in January 2024 was 35.41 per cent on a year-on-year basis, which was 11.10 percentage points higher compared to the rate recorded in January 2023 (24.32 per cent).

The rise in Food inflation on a year-on-year basis was caused by increases in prices of Bread and cereals, Potatoes, Yam and other Tubers, Oil and fat, Fish, Meat, Fruit, Coffee, Tea, and Cocoa.

“On a month-on-month basis, the Food inflation rate in January 2024 was 3.21 per cent, this was 0.49 per cent higher compared to the rate recorded in December 2023 (2.72 per cent). 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 Vegetables.

“The average annual rate of Food inflation for the twelve months ending January 2024 over the previous twelve-month average was 28.91per cent, which was a 7.38 percentage point increase from the average annual rate of change recorded in January 2023(21.53per cent).”