Nigeria’s inflation rate rose to 21.8% in January 2023 from 21.34% in the previous month, the highest increase since September 2005.
Headline inflation in January 2023 was 21.82%, up from 21.34% in December 2022.
Food inflation was 24.32% in January 2023, up from 23.74% in December 2022.
Urban inflation was 22.55%. Rural inflation was 21.13%.
Read the full January 2023 CPI report here: https://t.co/ResHYKcEhK pic.twitter.com/E4r5X6CzPr— NBS Nigeria (@NBS_Nigeria) February 15, 2023
In monthly terms, consumer prices rose a strong 1.87%, marking the highest increase in nearly 16 years, after a 1.71% increase the previous month.
The main factors that contributed to the rise in inflation were significant increases in food prices and the depreciation of the Nigerian currency, the naira.
Food prices, which have the highest weight in the consumer price index (CPI) basket, rose to 24.32% in January 2023 from 23.75% in the previous month. The contributions of the items by class to the increase in the owner index are:
- Bread and cereals (21.67%)
- Actual and imputed rent (7.74%)
- Potatoes
- yam and tuber (6.06%)
- Vegetable (5.44%)
- Meat (4.78%).
Outside of food, the largest increases were recorded in the prices of gas, liquid fuels, air passenger transport, vehicle spare parts, fuels and lubricants for personal transport equipment, solid fuel.
Inflation, which had been rising for 10 consecutive months, experienced a temporary dip to 21.34% in December 2022, but is rising again ahead of the next general election in February 2023.
Inflation in Nigeria over the last 12 monthsHigh inflation, weak economic growth and growing insecurity are at the forefront of many voters’ minds and are likely to play a major role in determining the outcome of the election.
Policymakers have attributed Nigeria’s inflationary pressures to its infrastructure problems and the country’s dependence on imports for many consumer goods.
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has stated that the bank will continue to adopt a falsified stance on interest rates if inflation remains high.
In January 2023, the Central Bank of Nigeria raised its key interest rate to 17.5%, marking a total of 600 basis points of rate hikes since May 2022.
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