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Surging food prices push inflation to 15.63% — first increase after 8 months of decline

Surging food prices push inflation to 15.63% — first increase after 8 months of decline
January 17
12:49 2022

The consumer price index, which measures the rate of increase in the price of goods and services, increased to 15.63 percent in December 2021.

This is the first increase after recording consecutive drops since April 2021 – amid a surge in food prices.

The National Bureau of Statistics (NBS) said this in its latest report released on Monday.

The rate is 0.23 percent points higher than the 15.40 percent recorded in November 2021.

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This implies that prices showed an uptick in December 2021 — but dropped when compared to the corresponding period of 2020.

According to the report, increases were recorded in all Classification of Individual Consumption According to Purpose (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 report reads.

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“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.”

“In December 2021, all items inflation on year on year basis was highest in Ebonyi (18.71%), Kogi (18.37%) and Bauchi (17.81%), while Kwara (12.32, Edo (13.46%) and%) Cross River (13.93%) recorded the slowest rise in headline Year on Year inflation,” the report reads.

“On month-on-month basis, the highest increases were recorded in Ebonyi (4.01%), River (3.41%) and Taraba (3.28%), while Jigawa (0.56%) recorded the slowest rise with Cross River and Kaduna recording price deflation or negative inflation (general decrease in the price level).

According to the report, food inflation also increased to 17.37 percent in December from 17.21 percent in November.

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NBS said the rise in the food sub-index was caused by increases in the price of bread and cereals, food product, meat, fish, potatoes, yam and other tubers, soft drinks and fruits.

“In December 2021, food inflation on a year-on-year basis was highest in Kogi (22.82%), Enugu (20.65%) and Lagos (20.27%), while Edo (13.24%), Kaduna (13.53%) and Sokoto (14.82%) recorded the slowest rise,” the report adds.

“On month-on-month basis, December 2021 food inflation was highest in Cross River (4.09%), Akwa Ibom (3.88%) and River (3.79%), while Nasarawa (0.21%), Jigawa (0.39%) recorded the slowest rise in inflation on month-on-month with Kaduna recording price deflation or negative inflation (general decrease in the price level of food or a negative food inflation rate).”

Meanwhile, core inflation, which excludes the prices of agricultural items, increased to 13.87 percent in December 2021 compared to 13.85 percent in November 2021.

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The report noted that the highest increases were recorded in prices of gas, liquid fuel, wine, actual and imputed rentals for housing, narcotics, tobacco, garments, shoes and other footwear and clothing materials, other articles of clothing and clothing accessories.

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