Inflation slows to 12 months low on base effect

By Elizabeth Adegbesan

After recording eight months consecutive decline in 2021, Nigeria’s inflation rate closed the year in the negative, rising 0.2 percentage point to 15.6 percent last month, from 15.4 percent in November, 2021.

The National Bureau of Statistics, NBS, disclosed this yesterday in its consumer price index, (CPI) report for December 2021 noting that the food price index also rose by 0.16 per cent points to 17.37 per cent from 17.21 per cent in November 2021.

The report stated: “The CPI which measures inflation increased by 15.63 per cent (year-on-year) in December 2021. This is 0.13 per cent points lower than the rate recorded in December 2020 (15.75) per cent. This is showing slowing down in the rate when compared to the corresponding period of 2020. 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 per cent in December 2021, this is 0.74 per cent rate higher than the rate recorded in November 2021 (1.08) per cent.

“The percentage change in the average composite CPI for the twelve-month period ending December 2021 increased by 16.95 per cent from 16.98 per cent over the average of the CPI for the previous twelve-month period recorded in November 2021 down by 0.03 per cent points.

“Urban inflation rate increased by 16.17 percent (year-on-year) in December 2021 from 16.33 percent recorded in December 2020, while the rural inflation rate increased by 15.11 per cent in December 2021 from 15.20 per cent in December 2020.

“On a month-on-month basis, the urban index rose by 1.87 per cent in December 2021, up by 0.75 the rate recorded in November 2021 (1.12) per cent, while the rural index also rose by 1.77 per cent in December 2021, up by 0.73 the rate that was recorded in November 2021 (1.04) per cent.”

On food inflation, NBS said: “The composite food sub-index rose by 17.37 per cent in December 2021 down by 2.19 per cent points when compared to 19.56 per cent in December 2020.

“This rise in the food sub-index was caused by increases in prices of bread and cereals, food products, meat, fish, potatoes, yam and other tubers, soft drinks and fruit.

“On a month-on-month basis, the food sub-index increased by 2.19 per cent in December 2021, up by 1.12 per cent points from 1.07 per cent recorded in November 2021.

“The average annual rate of change of the Food sub-index for the twelve-month period ending December 2021 over the previous twelve-month average was 20.40 per cent, 0.22 per cent points lower from the average annual rate of change recorded in November 2021 (20.62) per cent.”

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