Nigeria’s inflation rate rises to 15.75%, highest in four years

The National Bureau of Statistics (NBS) at the weekend said the nation’s inflation rate had risen from 14.89 per cent in November, 2020 to 15.75 per cent in December.

The new rate contained in the data titled “Consumer Price Index December 2020” and posted on NBS’ website represents the highest since 2017.

According to the document, “The consumer price index (CPI) which measures inflation increased by 15.75 per cent (year-on-year) in December 2020. This is 0.86 per cent points higher than the rate recorded in November 2020 (14.89) per cent.”

The corresponding twelve-month year-on-year average percentage change for the urban index is 13.86 per cent in December 2020.

The bureau noted that this is higher than the 13.55 per cent reported in November 2020, while the corresponding rural inflation rate in December 2020 was 12.67 per cent compared to 12.35 per cent recorded in November 2020.

The data noted that the percentage change in the average composite CPI for the 12-month period ending December 2020 over the average of the CPI for the previous 12-month period was 13.25 per cent, representing 0.33 per cent point increase over the 12.92 per cent recorded in November 2020.

According to NBS,  increases were recorded in all COICOP divisions that yielded the headline index.

On a month-on-month basis, the urban index rose by 1.65 per cent in December 2020, same as the rate recorded in November 2020, while the rural index also rose by 1.58 per cent in December 2020, up by 0.02 per cent above the rate that was recorded in November 2020 (1.56 per cent).

The data said on month-on-month basis, the Headline index increased by 1.61 per cent in December 2020.

NBS said this is 0.01 per cent rate higher than the rate recorded in November 2020 (1.60 per cent).

Continuing, the report said urban inflation rate increased by 16.33 per cent (year-on-year) in December 2020 from 15.47 per cent recorded in November 2020, while the rural inflation rate increased by 15.20 per cent in December 2020 from 14.33 per cent in November 2020.

NBS said the composite food index rose by 19.56 per cent in December 2020 compared to 18.30 per cent in November 2020.

It further noted that the average annual rate of change of the food sub-index for the twelve-month period ending December 2020 over the previous twelve-month average was 16.17 per cent, 0.42 per cent points from the average annual rate of change recorded in November 2020 (15.75) per cent.

The document said: “This rise in the food index was caused by increases in prices of Bread and cereals, potatoes, yam and other tubers, meat, fruits, vegetable, fish and oils and fats.

“On month-on-month basis, the food sub-index increased by 2.05 per cent in December 2020, up by 0.01 per cent points from 2.04 per cent recorded in November 2020.”