Nigeria’s inflation rate for December rose to 28.92% from 28.20% recorded in the previous month according to the latest National Bureau of Statistics (NBS) inflation report.
The increase marks the eleventh consecutive increase in the inflation rate from February 2023.
Examining the trend, the headline inflation rate for December 2023 experienced a rise of 0.72 percentage points in comparison to the November 2023 headline inflation rate.
When compared to December 2022, which had a headline inflation rate of 21.34%, the year-on-year basis for December 2023 saw a substantial increase of 7.58% points, indicating a rise in the headline inflation rate during the same month of the previous year.
Additionally, on the month-on-month comparison, the headline inflation rate for December 2023 reached 2.29%, surpassing November 2023’s rate of 2.09% by 0.20%.
This signifies that the average price level increased at a higher rate in December 2023 compared to the preceding month, November 2023.
Food Inflation
In December 2023, the year-on-year food inflation rate surged to 33.93%, primarily driven by increased prices of Oil and fat, Meat, Bread and Cereals, Potatoes, Yam & Other Tubers, Fish, and Milk, Cheese, and Eggs.
This represents a notable increase of 10.18% points compared to the rate registered in December 2022 (23.75%).
On a month-on-month basis, the food inflation rate for December 2023 reached 2.72%, representing a 0.30% increase from the rate observed in November 2023 (2.42%).
Core Inflation
The core inflation rate for the month was 23.06% on a year-on-year basis, marking a 4.85% increase compared to the 18.21% reported in December 2022.
The notable surges were observed in the prices of Passenger Transport by Road, Medical Services, Actual and Imputed Rentals for Housing, Passenger Transport by Air, Pharmaceutical products, Accommodation services, and more.
On a month-on-month basis, the core inflation rate for December 2023 was 1.82%, reflecting a 0.29% increase from the 1.53% recorded in November 2023.
The average twelve-month annual inflation rate stood at 20.76% for the twelve months ending December 2023, marking a 4.74 %-point increase from the 16.02% recorded in December 2022.
Urban inflation
For December 2023, the year-on-year Urban inflation rate surged to 31.00%, indicating an increase of 8.98% points compared to the 22.01% recorded in December 2022.
On a month-on-month basis, the Urban inflation rate for December 2023 reached 2.42%, showing a 0.19% point rise from the rate observed in November 2023 (2.23%).
Rural inflation
In December 2023, the year-on-year Rural inflation rate rose to 27.10%, marking a 6.38% increase from the 20.72% recorded in December 2022.
On a month-on-month basis, the rural inflation rate for December 2023 reached 2.17%, reflecting a 0.18% point uptick compared to November 2023 (1.99%).
The corresponding twelve-month average for the Rural inflation rate in December 2023 stood at 23.25%, representing a 4.91% increase from the 18.34% recorded in December 2022.