The National Bureau of Statistics reported that Nigeria’s inflation rate in December 2022 was 21.34%. The headline inflation rate dropped by 0.60%, marking Nigeria’s first decline in inflation in 11 months.
Also, food inflation was 23.75%, down by 1.57% from November 2022’s rate.
Core inflation, on the other hand, climbed from 18.24% to 18.49%, representing a 1.37% increase since November 2022.
The sharp increase in demand typically during the holiday season and the rise in production costs are the probable causes of the increase in month-over-month inflation.
In terms of year-on-year growth rate, headline inflation increased to 36.53% compared to 15.63% in December 2021. Food and headline inflation had a year-on-year increase of 36.73% and 33.31%, respectively. In December 2021, they increased by 17.37% and 13.87%, respectively.
The rise in headline inflation resulted from an increase in prices of food and non-alcoholic drinks, transportation, and other goods and services. Food items, including oil and fat, tubers, fish, potatoes, bread and cereal, and fruits, are all on the rise, which is being blamed for the rise in food inflation. The rising core inflation rate results from the rise in cost of gas, liquid fuel, air transportation, and solid fuel prices.
The states with the largest year-on-year increase in headline inflation were Bauchi (23.79%), Kogi (23.35%), and Anambra (23.13%). Taraba (18.98%), Osun (19.09%), and Kwara (19.19%) had the lowest year-on-year increase in headline inflation. On a month-on-month basis, Oyo (3.48%), FCT (3.05%), and Sokoto (2.58%) had the highest increases in headline inflation. Ebonyi (0.11%), Ekiti (0.66%), and Nasarawa (0.70%) had the lowest increases.
Nigeria’s rural inflation was 20.72%, while urban inflation was 22.01%.
Nigeria’s inflation