In January 2022, Nigeria’s consumer price index increased by 15.60 percent year on year, owing to higher prices for soft drinks and electricity.
This is 0.87 percentage point lower than the rate recorded in January 2021, according to the National Bureau of Statistics (NBS) (16.47 percent).
Month on month, the headline index increased to 1.47 percent in January 2022, 0.34 percent points lower than the 1.82 percent recorded in December 2021.
The composite food index increased by 17.13 percent in January 2022, compared to 20.57 percent in January 2021, according to NBS.
Bread and cereals, food products, potatoes, yams and other tubers, soft drinks, oils and fats, and fruit all saw price increases, contributing to the rise in the food index.
The federal government imposed a N10/litre excise duty on all non-alcoholic, carbonated, and sweetened beverages in January, as part of the Finance Act signed into law by President Muhammadu Buhari on December 31, 2021. Prices for carbonated beverages have risen as a result of the new law.
On a month-to-month basis, the food sub-index increased to 1.62 percent in January 2022, down from 2.19 percent in December 2021.
“The average annual rate of change of the Food sub-index for the twelve-month period ending January 2022 over the previous twelve-month average was 20.09 percent, 0.31 percent points higher than the average annual rate of change recorded in December 2021 (20.40) percent,” according to the report.
Food inflation was highest in Kogi (22.61 percent), Enugu (19.84 percent), and Akwa-Ibom (19.84 percent) (19.67 percent). On the other hand, Sokoto (14.18 percent), Bauchi (14.63 percent), and Kaduna (15.01 percent) had the lowest rate of increase in January 2022.
Food inflation was highest in Borno (2.87 percent), Zamfara (2.62 percent), and Kogi (2.53 percent) in January 2022, while it was lowest in Abia (0.29 percent), Taraba (0.57 percent), and Ondo (0.58 percent).
According to the report, the most significant increases were seen in the prices of electricity, liquid fuel, wine, tobacco, spirit, solid fuels, cleaning, repair, and hire of clothing, shoes, and other footwear.
“The “All items less farm produce” or core inflation rate stood at 13.87 percent in January 2022, up 2.02 percent from 11.85 percent in January 2021,” according to the report.
Nigeria’s inflation rate is 15.60 percent, which is higher than the apex bank’s single-digit band target (6 percent to 9 percent).
In December last year, rising food prices pushed inflation to 15.63 percent, the first increase in eight months.
At the conclusion of the Central Bank of Nigeria’s (CBN) monetary policy committee meeting in January, members noted that inflation would moderate further going into the new year, owing to significant interventions in the agricultural sector.
The CBN MPC stated that the Nigerian economy is expected to maintain positive growth following the impressive growth recorded in the third quarter of 2021, indicating that the country is still recovering from the recession.