Inflation goes all time high in Nigeria, hits 29.9% amid high food prices

The National Bureau of Statistics (NBS) announced on Thursday that Nigeria’s inflation rate for January jumped to 29.90% from December’s 28.92%. They pointed out a 0.98% increase from the previous month.

Comparing year-on-year, January’s rate was significantly higher by 8.08% than January 2023’s 21.82%. “This indicates a year-on-year inflation increase compared to the same month last year,” the NBS noted.

Additionally, the inflation rate from one month to the next in January 2024 was 2.64%, up by 0.35% from December 2023’s 2.29%. This suggests that prices were rising faster in January than in December.

Food inflation in January 2024 spiked to 35.41% year-on-year, marking an 11.10% increase from January 2023’s 24.32%. This rise has been linked to the end of fuel subsidy payments by President Bola Tinubu, further straining households as food and other essential prices soar, reducing purchasing power.

The scarcity of foreign exchange, driven by high demand for dollars and unmet forex supply by the Central Bank of Nigeria, has also pressured the Naira, which hit a record low against the dollar.

The NBS report highlighted the significant contributors to the headline inflation, including food & non-alcoholic beverages, housing, water, electricity, gas & other fuels, and clothing & footwear among others.

The report also detailed that food inflation was driven by price increases in bread, cereals, tubers, and other food items. Month-on-month, food inflation in January was 3.21%, a rise from December’s 2.72%, with notable increases in prices of tubers, bread, cereals, and meats.

The annual food inflation rate for the twelve months ending January 2024 increased by 7.38% from the previous year, showcasing a continuous rise in food costs.

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