BREAKING: Nigeria’s Annual Inflation Rate Up By 15.63%

Nigeria’s annual inflation rate for December 2021 increased by 15.63 percent. This figure represents a growth in the eight-month period captured.

The Nigeria Bureau of Statistics, which is tasked with the responsibility of collating such sensitive data, released its monthly report on the consumer price index amidst several other data points.

The report went further to explain the composition of the data and made several comparisons to previous data to help understand and appreciate the importance of this report.

Accordingly, "the consumer price index (CPI), which measures inflation, increased by 15.63 percent (year-on-year) in December 2021."

"This is 0.13 percent lower than the rate recorded in December 2020 (15.75 percent)."

However, when compared to December 2020, the rate slowed down due to several factors responsible for the shortage in the supply side of agricultural produce and also the attendant effect of the COVID-19 virus.

"This is showing a slowing down in the rate when compared to the corresponding period of 2020." The report stated

Increases were recorded in all COICOP divisions that yielded the headline index. On a month-to-month basis, the headline index increased by 1.82 percent in December 2021. This is a 0.74 percent rate higher than the rate recorded in November 2021 (1.08) percent.

The percentage change in the average composite CPI for the twelve-month period ending December 2021 increased from 16.98 percent to 16.95 percent, while the average for the previous twelve-month period was recorded in November 2021, down by 0.03 percent from the previous twelve-month period.

"The urban inflation rate increased by 16.17 percent (year-on-year) in December 2021 from the 16.33 percent recorded in December 2020, while the rural inflation rate increased by 15.11 percent in December 2021 from 15.20 percent in December 2020.

On a month-on-month basis, the urban index rose by 1.87 percent in December 2021, up by 0.75 from the rate recorded in November 2021 (1.12) percent, while the rural index also rose by 1.77 percent in December 2021, up by 0.73 from the rate that was recorded in November 2021 (1.04) percent.

"The twelve-month year-on-year average percentage change for the urban index is 17.52 percent in December 2021. The report concluded that this is lower than the rate reported in November at 17.55 percent, while the corresponding twelve-month (month-on-month) average percentage change for the rural index inflation rate in December 2021 stood at 16.40 percent, down from 16.42 percent in November of that same year.

Our allnews.ng economic analyst explained that the reason for the rise would be attributed to the festive period as people jostle to buy food items to celebrate the Christmas and New Year holiday seasons.

"The year-on-year drop in inflation rate figure for December 2020, which reported a 15.75% increase compared to a 15.63% increase for December 2021, could only be attributed to a shortage of food items coming from the country's northern region. We can also attribute this increase of 15.75% to the negative effect of the COVID-19 virus. "