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Nigeria's inflation rate rises to 11.98% as the effects of border closures continue to affect food prices

Authors:

Aderemi Ojekunle
2 market women bag 72-hour community service for fight in public
  • Nigeria's inflation rate rises to 11.98% in December 2019 from 11.85% recorded in November.

Nigeria's inflation rate climbed to 11.98% in December 2019 for the fourth consecutive month as food prices continue to spike due to border closures.

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The latest figure is 0.13% points higher than the rate recorded in November 2019 (11.85%).

The Nigerian Bureau of Statistics (NBS) stated this in its consumer price index (CPI) report for December 2019 released in Abuja on Friday, January 17th, 2019.

According to the report, increases were recorded in all Classification of Individual Consumption According to Purpose (COICOP) divisions that yielded the Headline index.

A towel with a print of the Nigerian naira is displayed for sale at a street market in the central business district in Nigeria's commercial capital Lagos February 4, 2016. REUTERS/Akintunde Akinleye/File Photo
A towel with a print of the Nigerian naira is displayed for sale at a street market in the central business district in Nigeria's commercial capital Lagos February 4, 2016. REUTERS/Akintunde Akinleye/File Photo Reuters/Akintunde Akinleye

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“On a month-on-month basis, the Headline index increased by 0.85 percent in December 2019, this is 0.17% rate lower than the rate recorded in November 2019 (1.02%).

“The percentage change in the average composite CPI for the twelve-month ending December 2019 over the average of the CPI for the previous twelve months period was 11.40%, showing 0.05% point from 11.35% recorded in November 2019.”

  • Food inflation rose by 14.67% in December 2019 compared to 14.48% in November 2019. This was caused by increases in prices of Bread and cereals, Meat, Fish, Oils and fats, Potatoes, yam and other tubers. 
  • Core inflation  which excludes the prices of volatile agricultural produce increased to 9.33% in December 2019, up by 0.34% when compared with 8.99% recorded in November 2019. 
  • The urban inflation rate increased by 12.62% (year-on-year) in December 2019 from 12.47% recorded in November 2019
  • Rural inflation rate increased by 11.41% in December 2019 from 11.30% in November 2019.
Godwin Emefiele, CBN governor, speaking at the end of the 270th meeting of the Monetary Policy Committee (MPC) at the apex bank’s headquarters in Abuja. (Twitter/Channels Television)
Godwin Emefiele, CBN governor, speaking at the end of the 270th meeting of the Monetary Policy Committee (MPC) at the apex bank’s headquarters in Abuja. (Twitter/Channels Television) Twitter/Channels Television

CBN monetary policy committee will meet next week to decide on the country's interest rate considering the current inflation figures.

At the last MPC meeting, CBN governor, Godwin Emefiele, said the impact of the border closures on inflation is temporary. At the November 2019 meeting, the rate setting committee left the country's interest rate at 13.5% while inflation climbed higher than the single rate target.

Authors:

Aderemi Ojekunle

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