Nigeria’s Inflation Nears 30%, Hits 29.90% in January 2024

February 15, 2024
Rising Inflation

By Adedapo Adesanya

Nigeria’s headline inflation neared the 30 per cent mark as it increased by 0.98 per cent to 29.90 per cent in January 2024 from 28.92 per cent in  December 2023, beating analysts’ expectations of 29.54 per cent.

According to the National Bureau of Statistics (NBS) on Thursday, on a year-on-year basis, the headline inflation rate was 8.08 per cent higher than the 23.82 per cent recorded in January 2023.

Recall that a few days ago, this newspaper reported that Meristem Research projected inflation to rise by 0.62 per cent to 29.54 per cent last month.

The continued increase in inflation has been attributed to the policies of President Bola Tinubu, including a partial removal of fuel subsidies and a unification of exchange rates that has seen the price of goods and services skyrocket.

“Food prices have continued to go beyond the reach of consumers due to the forex crisis and insecurity in the northern part of the country, where most of the food items come from,” the Meristem analysts said.

The NBS data today revealed that on a month-on-month basis, the headline inflation rate in January 2024 was 2.64 per cent, which is 0.35 per cent higher than the rate recorded in December 2023 (2.29 per cent). 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.

Giving a breakdown, the stats office noted that Food and Non-alcoholic beverages contributed 15.5 per cent to the headline index, followed by Housing, Water, Electricity, Gas, and Other Fuels with 5.0 per cent as Clothing and Footwear saw a 2.3 per cent contribution.

Transport added 1.9 per cent while Furnishings, Household Equipment, and Maintenance added 1.5 per cent and Education saw a 1.2 per cent rise. Others like Health, Miscellaneous Goods and Services among others saw less than 1 per cent contribution respectively.

The NBS showed that Nigeria’s food inflation rate in the reviewed month was 35.4 per cent on a year-on-year basis, which was 11. per cent points higher than the 24.32 per cent posted in January 2023.

The rise in food inflation was caused by a rise in the rate of increase in the average prices of potatoes, yams, other tubers, bread and cereals, fish, meat, tobacco, and vegetables.

On a month-on-month basis, the food inflation rate was 3.2 per cent, this was 0.5 per cent higher compared to the rate recorded in December 2023 (2.72 per cent).

The average annual rate of food inflation for the twelve months ending January 2024 over the previous twelve-month average was 28.91 per cent, which was a 7.4 per cent points increase from the average annual rate of change recorded in the same period of 2023 (21.53 per cent).

While urban inflation was 31.95 per cent, rural inflation came in at 28.1 per cent in December 2023.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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