CEM REPORT, ECONOMY | Amidst various economic challenges rising food prices especially during the festive season, the nation’s headline inflation rate eased to 21.34% in December 2022.
Inflation in December slowed by 0.13% to close the year at 21.47% from 21.34% recorded in November.
Although on a year-on-year basis, the headline inflation rate was 5.72% points higher compared to the rate recorded in December 2021, which was 15.63%.
Additionally, on a month-on-month basis, the percentage change in the All Items Index in December 2022 was 1.71%, which was 0.32% higher than the 1.39% recorded in November 2022.
This is indicative that the general price level was 0.32% higher relative to November 2022. According to NBS, this can be attributed to the sharp increase in demand usually experienced during the festive season, increase in the cost of production e.g. increase in energy cost, transportation cost, exchange rate depreciation etc.
Similarly, the percentage change in the average Consumer Price Index (CPI) for the twelve months ending December 2022 over the average of the CPI for the previous twelve months period was 18.85, showing a 1.89% increase compared to the 16.95% recorded in December 2021.
Urban Inflation, on a year-on-year basis, in the month of December 2022, the urban inflation rate was 22.01%, this was 5.85% higher compared to the 16.17% recorded in December 2021. On a month-on-month basis, the urban inflation rate was 1.80% in December 2022, this was 0.31% higher compared to November 2022 (1.50%).
The corresponding twelve-month average for the urban inflation rate was 19.38% in December 2022. This was 1.86% higher compared to the 17.52% reported in December 2021.
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Rural Inflation on the other hand, in December 2022 was 20.72% on a year-on-year basis; this was 5.61% higher compared to the 15.11% recorded in December 2021. On a month-on-month basis, the rural inflation rate in December 2022 was 1.63%, up by 0.33% compared to November 2022 (1.30%). The corresponding twelve-months average for the rural inflation rate in December 2022 was 18.34%. This was 1.94% higher compared to the 16.40% recorded in December 2021.
Food inflation rate in December 2022 was 23.75% on a year-on-year basis; which was 6.38% higher compared to the rate recorded in December 2021 (17.37%). The rise in the food inflation was caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other tubers, Fish, Food Product n.e.c,
On a month-on-month basis, the food inflation rate in December was 1.89%, this was 0.49% higher compared to the rate recorded in November 2022 (1.40%). This increase was attributed to increase in prices of some food items like Oil and fat, Fish, Potatoes & Tubers, Bread & Cereals, and Fruits etc
The average annual rate of food inflation for the twelve-months ending December 2022 over the previous twelve-month average was 20.94%, which was 0.53% points increase from the average annual rate of change recorded in December 2021 (20.40%).
