Nigeria’s Inflation Hits 29.90% According to NBS Recent Data

On Thursday, the National Bureau of Statistics (NBS) reported that the nation's annual inflation rate increased to 29.90% in January from the corresponding year, which finished at 28.92% in December 2023.

The statistical office reported that in January 2024, the inflation rate rose by 0.98% when compared closely with the December headline inflation rate record.

The NBS stated that on a year-on-year basis, the headline inflation rate was 8.08% points higher than the inflation rate recorded in January 2023, which signifies a 21.82% increase.

The commission said,

• This shows that the headline inflation rate (on a year-on-year basis) increased in January 2024 when compared to the same month in the preceding year (i.e., January 2023).

Also, the NBS reported that on a month-to-month basis, the headline inflation rate in January 2024 was 2.64%, 0.35% higher than in December 2023 (2.29%).

According to the NBS report, the food inflation rate in January 2024 skyrocketed to 35.41% on a year-on-year basis, which was 11.10% points higher when compared to the rate recorded in January 2023 (24.32).

Food prices have not experienced a rise recently because they have been on the rise for years since the Buhari administration. Still, they worsened after President Tinubu removed fuel subsidies on May 29, 2023, which saw an increase in hardship in the country.

The rise in the price of commodities has weakened the purchasing power of many citizens, making it difficult for many households to afford three square meals.

Also, forex scarcity has added to the hardship following the high demand for dollars by Nigerians willing to offset bills and the unremitted forex backlogs by the apex bank, which have mounted pressure on the naira. However, the CBN has recently cleared some of the FX backlogs.

It was reported that the Naira lost against the dollar on Monday to sell at N1,534.39/$ at the official market segment.

According to data published on the FMDQ website, the naira moved to an intraday high of N1000/$1 and a low of N1,550 to a dollar before it settled at N1,534.39 at the close of business on Monday, as reported.

The rate signifies a 4.38% depreciation from the previous market sales on Friday last week.

On Monday, forex turnover at the authorised market stood at $89.61 million, amidst increased demand and inflationary pressure across sectors of the country's economy.

NBS Report in Details According to Combined Report

According to the inflation report that the NBS released on Thursday, the body said that the contributions of items on the divisional year-on-year level to the increase in the headline index are food & non-alcoholic beverages (15.49%), housing, water, electricity, gas, & other fuels (5.00%), clothing & footwear (22.29%), and transport (1.95%).

Others are furnishings & household equipment & maintenance (1.50%), education (1.18%), health (0.90%), miscellaneous goods & services (0.50%), restaurants & hotels (0.36%), alcoholic beverages, tobacco, & kola (0.33%), recreation & culture (0.21%), and communication (0.20%).

The percentage change in the average CPI for the twelve-month ending January 2024 over the average for the previous twelve-month period was 25.35%, showing a 5.99% increase compared to 19.36% recorded in January 2023.

About Food Inflation 

The food inflation rate in January 2024 was 35.41% yearly, 11.10% points higher than the rate recorded in January 2023 (24.32%).

The bureau said increases in prices of bread and cereals, potatoes, yam and other tubers, oil and fat, fish, meat, fruit, coffee, tea, and cocoa caused the rise in food inflation year-on-year.

• On a month-on-month basis, the food inflation rate in January 2024 was 3.21%, which was 0.49% higher than in December 2023 (2.72%).

• The average annual rate of food inflation for the twelve months ending January 2024 over the previous twelve-month average was 28.91%, which was a 7.38% point increase from the average annual rate of change recorded in January 2023 (21.53%).