Inflation rate appreciates by 5.72% points in 2022, says NBS

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The National Bureau of Statistics (NBS) on Monday disclosed that Nigeria’s inflation rate in 2022 appreciated by 5.72 per cent points Year-on-Year (YoY) growth from 15.63 per cent reported in December  2021 as compared with 21.34 per cent reported in December 2022. 

The inflation rate, according to NBS on a Month-on-Month basis slowdown by 0.13per cent points to 21.34 per cent in December 2022 from 21.47 per cent in November 2022.

NBS explained that the likely factors responsible for the increase in inflation rate on month-on-month can be attributed to the sharp increase in demand usually experience during the festive season, increase in the cost of production such as energy and transportation cost, exchange rate depreciation, among others.

The report disclosed that December 2022 inflation rate showed a decline of 0.13per cent when compared to November 2022.

The report stated that on a YoY basis, the headline inflation rate was 5.72 percentage points higher compared to the rate recorded in December 2021, which was 15.63per cent.

“This shows that the headline inflation rate increased in the month of December 2022 when compared to the same month in the preceding year (i.e., December 2021).

“On a month-on-month basis, the percentage change in the All Items Index in December 2022 was 1.71 per cent, which was 0.32per cent higher than the rate recorded in November 2022 (1.39 per cent).

“This means that in the month of December 2022, the general price level was 0.32 per cent higher relative to November 2022.

“The percentage change in the average CPI for the twelve months ending December 2022 over the average of the CPI for the previous twelve months period was 18.85 per cent, showing 1.89 per cent increase compared to the 16.95 per cent recorded in December 2021,” the report stated.

On urban inflation, the report said: “On a YoY basis, in the month of December 2022, the urban inflation rate was 22.01%, this was 5.85 per cent higher compared to the 16.17 per cent recorded in December 2021.

“On a month-on-month basis, the urban inflation rate was 1.80 per cent  in December 2022, this was 0.31% higher compared to November 2022 (1.50 per cent).

“The corresponding twelve-month average for the urban inflation rate was 19.38 per cent in December 2022. This was 1.86% higher compared to the 17.52 per cent reported in December 2021.”

The NBS noted that rural inflation rate in December 2022 was 20.72 per cent on a year-on-year basis; this was 5.61 per cent higher compared to the 15.11 per cent recorded in December 2021.

On a month-on-month basis, the rural inflation rate in December 2022 was 1.63 per cent, up by 0.33 per cent compared to November 2022 (1.30 per cent).

“The corresponding twelve-months average for the rural inflation rate in December 2022 was 18.34 per cent. This was 1.94 per cent higher compared to the 16.40per cent recorded in December 2021,” it added.

According to the report, the food inflation rate in December 2022 was 23.75per cent on a YoY basis; which was 6.38 per cent higher compared to the rate recorded in December 2021 (17.37per cent).

“The rise in the food inflation was caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other tubers, Fish, Food Product, among others.

“On a month-on-month basis, the food inflation rate in December was 1.89per cent, this was 0.49per cent higher compared to the rate recorded in November 2022 (1.40 per cent). This increase was attributed to increase in prices of some food items like Oil and fat, Fish, Potatoes & Tubers, Bread & Cereals, and Fruits etc.

“The average annual rate of food inflation for the 12 months ending December 2022 over the previous twelve-month average was 20.94 per cent, which was 0.53 per cent points increase from the average annual rate of change recorded in December 2021 (20.40per cent),” the report added.

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