Surging food prices push inflation up after months of decline

Nigeria’s inflation rate in the month of December 2021 rose to 15.63 percent from 15.4 percent recorded in November 2021, after 8 months of consecutive decline, according to the consumer price index report released by the National Bureau of Statistics (NBS).

Nigeria’s inflation rate had been on a steady decline in the past 8 months since April 2021, moderating from the highs recorded in the previous year. However, the rate had just back-pedaled with an uptick in December 2021.

According to the Consumer Price Index December 2021 report, food inflation also rose to 17.37 percent from 17.21 percent recorded in the previous month while core inflation moved upward from 13.85 percent recorded in November 2021 to 13.87 percent.

This rise in the food sub-index was caused by increases in prices of bread and cereals, food products, meat, fish, potatoes, yam and other tubers, soft drinks and fruits.

On the other hand, the highest increases were recorded in prices of Gas, Liquid fuel, Wine, Actual and imputed rentals for housing, Narcotics, Tobacco, Spirit, Cleaning, repair and hire of clothing, Garments, Shoes and other footwear and Clothing materials, other articles of clothing and clothing accessories.

Increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline index, said NBS.

According to the document, urban inflation rate increased by 16.17 percent (year-on-year) in December 2021 from 16.33 percent recorded in December 2020 while the rural inflation rate increased by 15.11 percent in December 2021 from 15.20 percent in December 2020.