Nigeria’s inflation rate hit 28.92% in December 2023, a record 20-year high

Inflation rate in Nigeria rose to 28.92 percent in December 2023 from 28.20 percent recorded in November indicating a record 20-year high since January 2003.

The National Bureau of Statistics (NBS) that released the data on Monday attributed the rise partly to food inflation, which rose to 33.93 percent in December from 32.84 percent in November, constituting 50 percent of the inflation rate.

According to the NBS, the rise in food inflation on a year-on-year basis was due to increases in prices of oil and fat, bread and cereals, potatoes, yam and other tubers, fish, fruit, meat, vegetables milk, cheese, and eggs.

The NBS’s Consumer Price Index (CPI) report shows that food and non-alcoholic beverages contributed the most, 14.98 percent to the increase in the headline index, followed by housing water, electricity, gas, and other fuel,  4.84 percent, clothing and footwear 2.21 percent, transport 1.88 percent, furnishings and household equipment and maintenance 1.45 percent and education, 1.14 percent.

It added that others include, health 0.87 percent, miscellaneous goods and services 0.48 percent, restaurants and hotels 0.35 percent, alcoholic beverages, tobacco and kola 0.31 percent, recreation and culture 0.20, and communication 0.20 percent.

The NBS stated, “On a year-on-year basis, the headline inflation rate was 7.58 percent points higher compared to the rate recorded in December 2022, which was 21.34 percent. 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)”.

On a month-on-month basis, the headline inflation rate in December 2023 was 2.29 percent, which was 0.20 percent higher than the rate recorded in November 2023, showing 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.

Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 23.06 percent in December 2023 on a year-on year basis; up by 4.85 percent when compared to the 18.21 percent recorded in December 2022.

The NBS reported that the highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Passenger Transport by Air, Actual and Imputed Rentals for Housing, Pharmaceutical products, Accommodation services, etc.

The NBS noted that the percentage change in the average CPI for the 12-month ending December 2023 the average of the CPI for the previous 12-month period was 24.66 percent, showing a 5 increase compared to 18.85 percent recorded in December 2022.

Apart from a brief pause in December 2022, inflation rate in Nigeria has steadily increased since February 2022, an eleven-month consecutive high.