According to the December 2023 CPI data published by the NBS, annual inflation rate inched close to its three-decade peak at 28.9%, marking an increase from the previous month’s 28.2%. Over the past 12 consecutive months, headline inflation has persistently risen due to the significant depreciation of the Naira as well as challenges with food production and supply. In December 2023, the headline inflation rate increased to 28.92% relative to the November 2023 headline inflation rate which was 28.20%. Looking at the movement, the December 2023 headline inflation rate showed an increase of 0.72% points when compared to the November 2023 headline inflation rate.
According to NBS “On a year-on-year basis, the headline inflation rate was 7.58% points higher compared to the rate recorded in December 2022, which was 21.34%. This shows that the headline inflation rate (year-on-year basis) increased in December 2023 when compared to the same month in the preceding year (i.e., December 2022). Furthermore, on a month-on-month basis, the headline inflation rate in December 2023 was 2.29%, which was 0.20% higher than the rate recorded in November 2023 (2.09%). This means that in December 2023, the rate of increase in the average price level is more than the rate of increase in the average price level in November 2023. The percentage change in the average CPI for the twelve-month ending December 2023 over the average of the CPI for the previous twelve-month period was 24.66%, showing a 5.81% increase compared to 18.85% recorded in December 2022”..
The report further said “on a year-on-year basis, in December 2023, the Urban inflation rate was 31.00%, this was 8.98% points higher compared to the 22.01% recorded in December 2022. On a month-on-month basis, the Urban inflation rate was 2.42% in December 2023, this was 0.19% points higher compared to November 2023 (2.23%). The corresponding twelve-month average for the Urban inflation rate was 26.22% in December 2023. This was 6.83% points higher compared to the 19.38% reported in December 2022. The Rural inflation rate in December 2023 was 27.10% on a year-on-year basis; this was 6.38% higher compared to the 20.72% recorded in December 2022. On a month-on-month basis, the Rural inflation rate in December 2023 was 2.17%, up by 0.18% points compared to November 2023 (1.99%). The corresponding twelve-month average for the Rural inflation rate in December 2023 was 23.25%. This was 4.91% higher compared to the 18.34% recorded in December 2022. The Food inflation rate in December 2023 was 33.93% on a year-on-year basis, which was 10.18% points higher compared to the rate recorded in December 2022 (23.75%). The rise in Food inflation on a year-on-year basis was caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other Tubers, Fish, Meat, Fruit, Milk, Cheese, and Egg.
“On a month-on-month basis, the Food inflation rate in December 2023 was 2.72%, this was 0.30% higher compared to the rate recorded in November 2023 (2.42%). 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 Oil and fat, Meat, Bread and Cereals, Potatoes, Yam & Other Tubers, Fish and Milk, Cheese, and Egg. The average annual rate of Food inflation for the twelve months ending December 2023 over the previous twelve-month average was 27.96%, which was a 7.02% points increase from the average annual rate of change recorded in December 2022 (20.94%). The “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 23.06% in December 2023 on a year-on-year basis; up by 4.85% when compared to the 18.21% recorded in December 2022. The highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Actual and Imputed Rentals for Housing, Passenger Transport by Air, Pharmaceutical products, Accommodation services, etc. On a month-on-month basis, the Core Inflation rate was 1.82% in December 2023. It stood at 1.53% in November 2023, up by 0.29%. The average twelve-month annual inflation rate was 20.76% for the twelve months ending December 2023; this was 4.74% points higher than the 16.02% recorded in December 2022.”
