Nigeria’s headline inflation increased eight consecutive month, as it rose by 23bps in December 2021 to 15.63% y/y from 15.40% y/y in November 2021.
This was made known by the National Bureau of Statistic in its report that Month-on-Month, headline inflation rose by 74bps to 1.82% – the highest since May 2017 (1.88% m/m).
According to the Bureau, the food price index also rose by 0.16 percent points to 17.37 percent from 17.21 percent in November 2021.
“The CPI which measures inflation increased by 15.63 percent (year-on-year) in December 2021. This is 0.13 percent points lower than the rate recorded in December 2020 (15.75) percent. This is showing slowing down in the rate when compared to the corresponding period of 2020. Increases were recorded in all COICOP divisions that yielded the Headline index.
“On month-on-month basis, the Headline index increased by 1.82 percent in December 2021, this is 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 by 16.95 percent from 16.98 percent over the average of the CPI for the previous twelve-month period recorded in November 2021 down by 0.03 percent points.
“Urban inflation rate increased by 16.17 percent (year-on-year) in December 2021 from 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 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 the rate that was recorded in November 2021 (1.04) percent.”
Food inflation was not left out as the composite food sub-index rose by 17.37 percent in December 2021 down by 2.19 percent points when compared to 19.56 percent in December 2020.
“This rise in the food sub-index was caused by increases in prices of Bread and cereals, Food product n.e.c, Meat, Fish, Potatoes, yam and other tuber, Soft drinks and fruit.
“On a month-on-month basis, the food sub-index increased by 2.19 percent in December 2021, up by 1.12 percent points from 1.07 percent recorded in November 2021.
“The average annual rate of change of the Food sub-index for the twelve-month period ending December 2021 over the previous twelve-month average was 20.40 percent, 0.22 percent points lower from the average annual rate of change recorded in November 2021 (20.62) percent.
“All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.87 percent in December 2021, up by 2.50 percent when compared with 11.37 percent recorded in December 2020.”
On a month-on-month basis, the core sub-index increased by 1.12 percent in December 2021. This was down by 0.13 percent when compared with 1.26 percent recorded in November 2021.
“The highest increases were recorded in prices of Gas, Liquid fuel, Wine, Actual and imputed rentals for housing, Narcotics, Tobacco, Spirit, Cleaning, repair and hire of clothing, Garments, Shoes and other footwear and Clothing materials, other articles of clothing and clothing accessories.
“The average annual rate of change of the All items less farm produce index was 13.16 percent for the twelve-month period ending December 2021; this is 0.21 percent points higher than 12.96 percent recorded in November 2021”
