Nigeria’s inflation rate surges to 29.90 in January amidst rising cost of living

In the latest inflation report released by the National Bureau of Statistics (NBS), Nigeria’s inflation rate for January 2024 has surged to 29.90 per cent, marking a significant increase from the 28.92 per cent recorded in the preceding month.

Delving into a year-on-year comparison, the inflation rate for January 2023 stood at 21.82 per cent, showcasing a considerable leap of 8.08 per cent points by January 2024, underscoring an escalated headline inflation rate over the same period in the preceding year.

A closer examination on a month-on-month basis illustrates that the headline inflation rate for January 2024 ascended to 2.64 per cent, outpacing the 2.29 per cent observed in December 2023 by 0.35 per cent points.

This increment elucidates a heightened rise in the average price level for January 2024 relative to the increase noted in December 2023, highlighting the growing inflationary pressures within the nation’s economy.

The NBS reports a significant surge in the food inflation rate for January 2024, reaching a year-on-year high of 35.41. This marks a substantial 11.10 per cent-point increase from the 24.32 per cent observed in January 2023, highlighting a pronounced rise in the cost of food items.

The key drivers of this inflationary pressure include notable price hikes in essential food commodities such as bread and cereals, potatoes, yams and other tubers, oils and fats, fish, meat, fruits, as well as coffee, tea, and cocoa.

In a more granular month-on-month analysis, the food inflation rate for January 2024 escalated to 3.21 per cent, which is 0.49 per cent points above the rate recorded in December 2023 (2.72 per cent). This increase can be attributed to the accelerated rate of price rises in potatoes, yams and other tubers, bread and cereals, fish, meat, tobacco, and vegetables.