Nigeria’s headline inflation jumped by 0.72 per cent to 28.92 per cent in December 2023, up from 28.20 per cent in November 2023, according to a report released on Monday by the National Bureau of Statistics.
This is the highest level of average cost of goods and services since 1997, when the late General Sani Abacha was in power.
The statistics office reported today that the headline inflation rate was 7.58 per cent higher year on year than the 21.34 per cent recorded in December 2022.
The surge in inflation corresponded to tendencies throughout the holiday season, a time when prices tend to climb. The removal of fuel subsidies and the unification of exchange rates has seen the prices of goods and services skyrocket.
Furthermore, the headline inflation rate in the period under review was 2.29 per cent, 0.29 per cent higher than the figure reported in November 2023 (2.09 per cent). This signifies that the rate of growth in the average price level in December 2023 was greater than the rate of increase in the average price level in November 2023.
Food and non-alcoholic drinks contributed 14.98% to the headline index on a yearly basis, according to the breakdown. Housing, Water, Electricity, Gas, and Other Fuels contributed 4.84 per cent, and Clothing and Footwear contributed 2.21 per cent.
Transport increased by 1.88 per cent, while Furnishings, Household Equipment, and Maintenance increased by 1.45 per cent and Education saw a 1.14 per cent rise. Others like Health, Miscellaneous Goods and Services among others saw less than 1 per cent contribution respectively.
According to the NBS, Nigeria’s food inflation rate in December 2023 was 33.93% year on year, which was 10.18% more than the rate recorded in December 2022 (23.75%).
Food inflation increased year on year due to price rises in oil and fat, bread, cereals, potatoes, yams, and other tubers, as well as contributions from other commodities.
