Inflation rate eased by 0.13 per cent last December from the 21.47per cent in November, this year to 21.34 per cent the following month.
It was the first time that the rate was reduced in the last 11 months.
The National Bureau of Statistics (NBS) broke the news in its “CPI December 2022 Report,” yesterday.
The document said “In December 2022, the headline inflation rate eased to 21.34per cent compared to November 2022 headline inflation rate which was 21.47per cent.
Looking at the trend, December 2022 inflation rate showed a decline of 0.13 per cent when compared to November 2022 inflation rate.
NBS said, however, yearly, the headline inflation rate was 5.72per cent points higher compared to the rate recorded in December 2021, which was (15.63 per cent).
According to the report, this shows that the headline inflation rate increased last December when compared to the same month in the preceding year (i.e., December 2021).
NBS also explained that “on a month-on-month basis, the percentage change in the All Items Index in December 2022 was 1.71per 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 0.32per cent higher relative to November 2022.
“The percentage change in the average 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.”
NBS said the likely factors responsible for the increase in the monthly inflation rate (Month-on-month basis) 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.
In terms of urban inflation, the report said on a year-on-year basis, in the month of December 2022, the urban inflation rate was higher compared to November 2022 (1.50%).
NBS noted that the rural inflation rate in December 2022 was 20.72% on a year-on-year basis; this was 5.61% 2022 (1.30%).
The report said the food inflation rate in December 2022 was 23.75% on a year-on-year basis; which was 6.38% higher compared to the rate recorded in December 2021 (17.37%).
According to the report, the “rise in the food inflation was caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other tubers, Fish, Food Product.
“On a month-on-month basis, the food inflation rate in December was 1.89%, this was 0.49% higher compared to the rate recorded in November 2022 (1.40%).
“This increase was attributed to increase in prices of some food items like Oil and fat, Fish, Potatoes & Tubers, Bread & 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%, which was 0.53% points increase from the average annual rate of change recorded in December 2021 (20.40%).”
The report noted that in December 2022, food inflation on a year-on-year basis was highest in Kwara (27.90%), Imo (26.94%) and Ebonyi (26.28%), while Sokoto (20.90%), Taraba (21.59%) and Cross River (21.71%) recorded the slowest rise in year-on-year food inflation.
According to the report, on a month-on-month basis, however, December 2022 food inflation was highest in Sokoto (3.38%), Oyo (3.10%) and Kaduna (2.97%), while Nasarawa (0.06%), Osun (0.70%) and Kogi (0.76%) recorded the slowest rise on month-on-month inflation.
NBS said the ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 18.49% in December 2022 on a year-on-year basis; up by 4.62% when compared to the 13.87% recorded in December 2021. “
The report said on a month-on-month basis, the core inflation rate was 1.33% in December 2022, stressing it stood at 1.67% in November 2022, down by 0.34%.
The highest increases, according to the bureau, were recorded in prices of Gas, Liquid fuel, Passenger transport by Air, Vehicles spare parts, Fuels and lubricants for personal transport equipment, Solid fuel etc.
It said the average 12-month annual inflation rate was 16.08% for the twelve-months ending December 2022; this was 2.91% points higher than the 13.16% recorded in December 2021.
NBS noted that in December 2022, all items inflation rate on a year-on-year basis was highest in Bauchi (23.79%), Kogi (23.35%), Anambra (23.13%), while Taraba (18.98%), Osun (19.09%) and Kwara (19.18%) recorded the slowest rise in headline year-on-year inflation.
On a month-on-month basis, it said however, December 2022 recorded the highest increases in Oyo (3.48%), Abuja (3.05%), Sokoto (2.58%), while Ebonyi (0.11%), Ekiti (0.68%) and Nasarawa (0.70%) recorded the slowest rise on month-on-month inflation.
