Nigeria’s Inflation Rises To 16.% Highest Since April 2016

Nigeria's inflation graph straightnews
Nigeria's inflation graph

The Consumer Price Index measuring inflation in the country rose to 16.47 per cent in January 2021, the National Bureau of Statistics stated on Tuesday February 16.

Though this is the highest point since April 2017, the new report also revealed that food inflation rose to 20.57 per cent in January while core inflation, which excludes the price of volatile agricultural produce stood at 11.85 per cent.

It read, “The percentage change in the average composite CPI for the twelve months period ending January 2021 over the average of the CPI for the previous twelve months period was 13.62 percent, representing a 0.37percentage point increase over 13.25 percent recorded in December 2020.

“The urban inflation rate increased by 17.03 percent (year-on-year) in January 2021 from 16.33 percent recorded in December 2020, while the rural inflation rate increased by 15.92 percent in January 2021 from 15.20 percent in December 2020.’’

The upward movement in food inflation is said to have been caused by increases in the prices of bread, cereals, potatoes, yam and other tubers, meat, fruits, oils and fats, vegetables, and fish.

“This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Meat, Fruits, Vegetable, Fish and Oils, and Fats.

“On month-on-month basis, the food sub-index increased by 1.83 percent in January 2021, down by 0.22 percent points from 2.05 percent recorded in December 2020,” the report added.

Core inflation, which excludes the prices of agricultural items, stood at 11.85 percent in January 2021, up by 0.48 percentage points when compared with 11.37 percent recorded in December 2020.

On a year-on-year basis, food inflation was highest in Kogi (26.64 percent), Oyo (23.69 percent), and River (23.49 percent), while Ondo (17.20 percent), Abuja (16.73 percent), and Bauchi (16.37 percent) recorded the slowest rise.