Nigeria’s Inflation Rate Surges to 29.90% in January 2024
The National Bureau of Statistics (NBS) has released its latest inflation report, revealing a significant increase in Nigeria’s inflation rate for January 2024. The rate surged to 29.90%, marking a notable rise from the 28.92% recorded in December 2023.
On a year-on-year basis, the inflation rate for January 2024 showed a substantial leap of 8.08% points from January 2023’s rate of 21.82%. This indicates a significant escalation in headline inflation over the same period in the preceding year.
In a month-on-month comparison, the headline inflation rate for January 2024 rose to 2.64%, surpassing December 2023’s rate of 2.29% by 0.35% points. This increase reflects a heightened rise in the average price level for January 2024, highlighting growing inflationary pressures in Nigeria’s economy.
The NBS report also highlights a significant surge in food inflation for January 2024, reaching a year-on-year high of 35.41%. This marks a substantial 11.10%-point increase from the 24.32% observed in January 2023, indicating a pronounced rise in the cost of food items.
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.
On a month-on-month basis, the food inflation rate for January 2024 rose to 3.21%, which is 0.49% points above the rate recorded in December 2023 (2.72%). This increase can be attributed to accelerated price rises in several food items.
Moreover, the average annual rate of food inflation for the twelve months ending in January 2024 surged to 28.91%, representing a significant 7.38%-point increase from the 21.53% annual rate of change recorded in January 2023. This underscores the escalating cost pressures within the food sector, impacting the cost of living for households across Nigeria.
Nairametrics
