In a disquieting economic revelation, Nigeria grapples with an inflationary spike, reaching 28.92 per5 cent in December 2023, as reported by the latest data from the National Bureau of Statistics (NBS). This alarming figure marks the eleventh consecutive monthly increase since February 2023, emphasizing the persistent economic challenges facing the country.
Year-on-Year Strain:
Comparing December 2023 to the same month in 2022, the year-on-year inflation rate witnessed a staggering increase of 7.58 percentage points. The headline inflation rate for December 2022 stood at 21.34 per cent, underscoring the severity of the inflationary pressures witnessed during the corresponding period last year.
Month-on-Month Surge:
On a month-on-month basis, the headline inflation rate for December 2023 surged to 2.29 per cent, surpassing the rate recorded in November 2023 by 0.20 per cent. This uptick signals an accelerated pace of average price level increases in December compared to the preceding month.
Food Inflation Hits 33.93%:
Food inflation, a critical component of the overall inflation basket, experienced a year-on-year surge to 33.93 per cent in December 2023. The increase was primarily driven by soaring prices of oil and fat, meat, bread and cereals, potatoes, yam & other tubers, fish, and milk, cheese, and eggs. This represents a substantial uptick of 10.18 percentage points compared to the food inflation rate in December 2022.
On a month-on-month basis, the food inflation rate for December 2023 rose to 2.72 per cent, indicating a 0.30 per cent increase from the rate observed in November 2023.
Core Inflation Struggles:
The core inflation rate for December 2023, which excludes volatile food and energy prices, stood at 23.06 per cent on a year-on-year basis. This marked a notable increase of 4.85 per cent compared to December 2022. Surges were observed in prices of various essentials, including passenger transport by road, medical services, rentals for housing, passenger transport by air, pharmaceutical products, and accommodation services.
On a month-on-month basis, the core inflation rate for December 2023 rose to 1.82 per cent, reflecting a 0.29 per cent increase from November 2023.
Twelve-Month Annual Inflation Rate Soars:
The average twelve-month annual inflation rate stood at 20.76 per cent for the twelve months ending December 2023, indicating a significant 4.74 percentage-point increase from the rate recorded in December 2022, which stood at 16.02 per cent.
Urban and Rural Areas Hit:
For December 2023, the year-on-year urban inflation rate surged to 31.00 per cent, marking an increase of 8.98 percentage points compared to December 2022. Rural areas also experienced a rise in the year-on-year inflation rate, reaching 27.10 per cent, marking a 6.38 per cent increase from December 2022.
On a month-on-month basis, both urban and rural inflation rates showed increases, reaching 2.42 per cent and 2.17 per cent, respectively, in December 2023.
These unsettling figures underscore the urgency for comprehensive measures to address the persistent inflationary pressures and stabilize the economic landscape in Nigeria.
