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Inflation rate hits worrying 29.90% in January as economy bites Nigerians

According to the bureau, the figure is 0.98% points higher compared to the 28.92% recorded in December 2023.

Inflation rate hits worrying 29.90% in January as economy bites Nigerians

The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for December, which was released in Abuja on Thursday. According to the bureau, the figure is 0.98% points higher compared to the 28.92% recorded in December 2023.

Similarly, the bureau said , on a year-on-year basis, the headline inflation rate was 8.08% points higher compared to the rate recorded in January 2023, which was 21.82%.

"It said on a year-on-year basis, the headline inflation rate in January 2024 was 8.08% higher than the rate recorded in January 2023 at 21.82%.

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In addition, the report said, on a month-on-month basis, the headline inflation rate in January 2024 was 2.64%, which was 0.35% higher than the rate recorded in December 2023 at 2.29%.

"This means that in January 2024, the rate of increase in the average price level is more than the rate of increase in the average price level in December 2023.”

The report said the increase in the headline index for January 2024 on a year-on-year basis and month-on-month basis was attributed to the increase in some items in the basket of goods and services at the divisional level.

It said these increases were observed in food and non-alcoholic beverages, housing, water, electricity, gas, and other fuel, clothing and footwear, and transport.

Others are furnishings, household equipment and maintenance, education, health, miscellaneous goods and services, restaurants and hotels, alcoholic beverage, tobacco and kola, recreation and culture, and communication.

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The bureau said the percentage change in the average CPI for the 12 months ending January 2024 over the average of the CPI for the previous corresponding 12-month period was 25.35%.

“This indicates a 5.99% increase compared to 19.36% recorded in January 2023.”

The report said the food inflation rate in January 2024 increased to 35.41% on a year-on-year basis, which was 11.10% higher compared to the rate recorded in January 2023 at 24.32%.

“The rise in food inflation on a year-on-year basis is caused by increases in prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, meat, fruit, coffee, tea, and cocoa. ”

It said on a month-on-month basis, the food inflation rate in January was 3.21%, which was a 0.49% increase compared to the rate recorded in December 2023 at 2.72%.

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“The rise in food inflation on a month-on-month basis was caused by an increase in the average prices of potatoes, yam and other tubers, bread and cereals, fish, meat, tobacco, and vegetable.”

The report said that “All items less farm produce and energy’’ or core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 23.59 per cent in January on a year-on-year basis.

“This increased by 4.71% compared to 18.88% recorded in January 2023.’’

“The exclusion of the PMS is due to the deregulation of the commodity by removal of subsidy.”

It said the highest increases were recorded in prices of passenger transport by road, medical services, actual and imputed rentals for housing, pharmaceutical products, accommodation service, and passenger transport by air, etc.

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The NBS said on a month-on-month basis, the core inflation rate was 2.24% in January 2024.

“This indicates a 0.42% rise compared to what was recorded in December 2023 at 1.82%.”

“The average 12-month annual inflation rate was 21.15% for the 12 months ending January 2024, this was 4.74% points higher than the 16.41% recorded in January 2023.”

The report said on a year-on-year basis in January 2024, the urban inflation rate was 31.95%, which was 9.40% higher compared to the 22.55% recorded in January 2023.

“On a month-on-month basis, the urban inflation rate was 2.72% in January representing a 0.30% increase compared to December 2023 at 2.42%.”

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The report said on a year-on-year basis in January 2024, the rural inflation rate was 28.10%, which was 6.97% higher compared to the 21.13% recorded in January 2023.

“On a month-on-month basis, the rural inflation rate was 2.57%, which increased by 0.40% compared to December 2023 at 2.17%.’’

On states’ profile analysis, the report showed in January, all items inflation rate on a year-on-year basis was highest in Kogi at 35.79%, followed by Oyo at 34.58%, and Akwa Ibom at 33.16%.

It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Borno at 22.57%, followed by Taraba at 24.83%, and Benue at 26.64%.

The NBS, however, said in January 2024, all items inflation rate on a month-on-month basis was highest in Ondo at 3.79%, followed by Osun at 3.77%, and Jigawa at 3.58%.

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“Bayelsa at 0.45 %, followed by Yobe at 1.10% and Ogun at 1.35% recorded the slowest rise in month-on-month inflation.”

The bureau said on a year-on-year basis, food inflation was highest in Kogi at 44.18%, followed by Kwara at 40.87%, and Rivers at 40.08%.

“Bauchi at 28.83%, followed by Adamawa at 29.80% and Kano at 30.08% recorded the slowest rise in food inflation on a year-on-year basis.’’

The NBS, however, said on a month-on-month basis, food inflation was highest in Ondo at 4.69%, followed by Osun at 4.59%, and Edo at 4.58%.

“In Bayelsa it was at 0.24%, followed by Yobe at 0.97% and Ogun at 1.44%, recorded the slowest rise in inflation on a month-on-month basis.”

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