From Isaac Anumihe, Abuja
For the first time in several months, the National Bureau of Statistics (NBS) reported that inflation has eased to 21.34 per cent in December from an all-time high of 21.47 per cent in November 2022.
The December report shows a decline of 0.13 per cent when compared to the November 2022 inflation rate.
However, on a year-on-year basis, the headline inflation rate was 5.72 per cent points higher compared to the rate recorded in December 2021, which was 15.63 per cent.
“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).
“On a month-on-month basis, the percentage change in the All Items Index in December 2022 was 1.71 per cent, which was 0.32 per cent higher than the rate recorded in November 2022 (1.39 per cent). This means that in the month of December 2022, the general price level was 0.32 per cent higher relative
to November 2022.
“The percentage change in the average Composite Price Index (CPI) for the twelve months ending December 2022 over the average of the CPI for the previous twelve months period was 18.85 per cent, showing
1.89 per cent increase compared to the 16.95 per cent recorded in December 2021.
“The increases were recorded in all Classifications of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index most especially in food and non-alcoholic beverages, transport and miscellaneous goods and services” the bureau, said.
The bureau acknowledged that the factors that affect increases include, sharp demand for goods and services (especially in the festive periods); cost of production, transportation cost and exchange rate depreciation
“Basically, the likely factors responsible to increase inflation rate in month-on-month can be
attributed to the sharp increase in demand usually experienced during the festive season; increase in the cost of production e.g. increase in energy cost, transportation cost, exchange rate depreciation etc” it said.
Meanwhile, NBS said that the food inflation rate in December 2022 was 23.75 per cent on a year-on-year basis which was 6.38 per cent higher compared to the rate recorded in December 2021 (17.37 per cent). The rise in food inflation was caused by increases in prices of bread and cereals, oil and fat; potatoes, yam and other tubers, fish, and food products.
“On a month-on-month basis, the food inflation rate in December was 1.89 per cent. This was
0.49 per cent higher compared to the rate recorded in November 2022 (1.40 per cent). This increase was attributed to an increase in prices of some food items like oil and fat, fish, potatoes and tubers, bread and cereals, and fruits, etc.
“The average annual rate of food inflation for the twelve months ending December 2022 over the previous twelve-month average was 20.94 per cent, which was 0.53 per cent points increase
from the average annual rate of change recorded in December 2021 (20.40 per cent),” NBS said.