Nigeria's Inflation Hits All-time Highest In 3 Years

Nigeria's inflation rate has increased for the 16th straight month after it recorded a 15.75% rise in January from that of last month 14.48%, marking its highest level since November 2017, when it stood at 15.90 percent.

According to the National Bureau of Statistics (NBS), the composite food index rose by 19.56 per cent in December from 18.30 percent in November.

“This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam, and other tubers, meat, fruits, vegetable, fish and oils, and fats,” it added.

The NBS also said that inreases were equally recorded in all the Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the Headline index. 

On month-on-month basis, the NBS explained that the Headline index increased by 1.61 percent in December 2020. This it said was 0.01 percent rate higher than the rate recorded in November 2020 (1.60 percent).

The percentage change in the average composite CPI for the twelve months period ending December 2020 over the average of the CPI for the previous twelve months period was 13.25 percent, representing a 0.33 percent point increase over 12.92 percent recorded in November 2020. 

READ MORE: Inflation Rises To 12.16% In March - NBS

The urban inflation rate also increased in December by 16.33 percent (year-on-year) in December 2020 from 15.47 percent recorded in November 2020, while the rural inflation rate increased by 15.20 percent in December 2020. 

On a month-on-month basis, the urban index rose by 1.65 percent in December 2020, same as the rate recorded in November 2020, while the rural index also rose by 1.58 percent in December 2020, up by 0.02 percent above the rate that was recorded in November 2020 (1.56 percent). 

The corresponding twelve-month year-on-year average percentage change for the urban index is 13.86 percent in December 2020. 

This is higher than 13.55 percent reported in November 2020, while the corresponding rural inflation rate in December 2020 was 12.67 percent compared to 12.35 percent recorded in November 2020.