For the first time in the last ten months, Nigeria’s inflation rate dipped.
Nigeria’s annual inflation dipped in the last month of 2022 to 21.34% after 10 months of recording increases. This follows a decline of 0.13% between November and December.
This information was disclosed by the country’s National Bureau of Statistics on Monday, ahead of a central bank meeting to set interest rates next week.
“In December 2022, the headline inflation rate eased to 21.34% compared to November 2022 headline inflation rate which was 21.47%. Looking at the trend, December 2022 inflation rate showed a decline of 0.13% when compared to November 2022 inflation rate. “However, on a year-on-year basis, the headline inflation rate was 5.72% points higher compared to the rate recorded in December 2021, which was (15.63%).” The NBS’s report read in part.
“This shows that the headline inflation rate increased in the month of December 2022 when compared to the same month in the preceding year (i.e., December 2021).” The report added.
The Central Bank has scheduled a meeting for the 24th of January 2023, to have a conversation on the country’s interest and inflation rates.
The bank had previously noted that it would continue with rate hikes starting in 2022 if the inflation rate remained elevated.
A month prior the country’s inflation rate, which hit 21.47%, had done so based on increased goods demands synonymous with festivities in the country, particularly the Christmas festivities. The rising inflation in November was also a result of a rise in production costs and a weak naira performance.
"The increases were recorded in all ... divisions that yielded the headline index most especially in food & non-alcoholic beverages, transport and miscellaneous goods & services," the NBS said in a report.
Food inflation dropped to 23.75% in December from November's rate of 24.13% as Africa's most populous nation struggled with high prices for staples.
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