CEM REPORT, ECONOMY | The unabating increase in prices of food in Nigeria has continued to push the country’s headline inflation higher having contributed 15.49% and 1.37% to year-on-year and month-on-month increases respectively for the month of January.
Headline inflation rate increased to 29.90% in January 2024, relative to the December 2023 headline inflation rate which was 28.92%, an increase of 0.98% points. This represents 8.08% points increase from 21.82% recorded in January 2023.
According to the Consumer Price Index report just released by the Nigerian Bureau of Statistics, the headline inflation rate in January 2024 was 2.64% month-on-month basis, which was 0.35% higher than the rate recorded in December 2023 (2.29%).
NBS report revealed that Urban inflation rate grew higher that Rural inflation rate in January 2024. Urban inflation rate increased by 9.40% points to 31.95% (y-on-y) from 22.55% recorded in January 2023 and by 0.30% points (m-on-m) to 2.72% from 2.42% in December 2023.
On the other hand, Rural inflation rate in January 2024 was 28.10% (y-on-y), a 6.97% increase from the 21.13% recorded in January 2023. Increase (m-on-m) was by 0.40% points to 2.57% from 2.17% recorded in December 2023.
Food Inflation
Food inflation rate in January 2024 was 35.41% on a year-on-year basis, which was 11.10% points higher compared to the rate recorded in January 2023 (24.32%). On a month-on-month basis, the Food inflation rate in January 2024 was 3.21%, this was 0.49% higher compared to the rate recorded in December 2023 (2.72%).
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Core Inflation stood at 23.59% (y-on-y), up by 4.71% when compared to the 18.88% recorded in January 2023. The increases in this category were led by prices of Passenger Transport by Road. On a month-on-month basis, the Core Inflation rate was 2.24% in January 2024. It stood at 1.82% in December 2023, up by 0.42%.
Twelve Months Inflation Average
For the average twelve-month rate, CPI was 25.35%, showing a 5.99% increase compared to 19.36% recorded in January 2023. Food inflation stood 28.91%, which was a 7.38% points increase from the rate recorded in January 2023(21.53%). Core Inflation rate, on the other hand, was 21.15%, 4.74% points higher than the 16.41% recorded in January 2023.
State Inflation
On a State level, Kogi (35.79%), Oyo (34.58%), Akwa Ibom (33.16%) led highest increases, while Borno (22.57%), Taraba (24.83%) and Benue (26.64%) recorded the slowest rise in Headline inflation on Year-on-Year basis.
On a Month-on-Month basis, however, increases were highest in Ondo (3.79%), Osun (3.77%), Jigawa (3.58%), while Bayelsa (0.45%), Yobe (1.10%) and Ogun (1.35%) recorded the slowest rise.
Food inflation was highest in Kogi (44.18%), Kwara (40.87%), and Rivers (40.08%), while Bauchi (28.83%), Adamawa (29.80%) and Kano (30.08%) recorded the slowest rise in Food inflation on Year-on-Year basis.
On a Month-on-Month basis, January 2024 Food inflation was highest in Ondo (4.69%), Osun (4.59%), and Edo (4.58%), while Bayelsa (0.24%), Yobe (0.97%) and Ogun (1.44%) recorded the lowest increases.
