CONSUMER PRICE INDEX REPORT: Inflation Rate for January 2023 rose to 21.82% – NBS

The National Bureau of Statistics today reported that inflation rate for January 2023 rose to 21.82% compared to December 2022 headline inflation which was 21.34%.

A glance at the headline inflation trend indicated that the January 2023 inflation rate showed an increase of 0.47% points when compared to December 2022 inflation rate.
Likewise, on a year-on-year basis, the headline inflation rate was 6.22% points higher compared to the rate recorded in January 2022, which was (15.60%).

This shows that the headline inflation rate (year-on-year) increased in January 2023 when compared to the same period in the preceding year (i.e., January 2022).

The increase in the Headline index was largely attributed to the rise in prices of Bread and Cereal 21.67%, Actual and imputed rent 7.74%, Potatoes, Yam and Tubers 6.06%, Vegetables 5.44%, and Meat 4.78%.

On a month-on-month basis, the percentage change in the All-Items Index in January 2023 was 1.87%, which was 0.15% higher than the rate recorded in December 2022 (1.71%). This means that in January 2023, the general average price level was 0.15% higher relative to December 2022.

The percentage change in the average CPI for the twelve months ending January 2023 over the average of the CPI for the previous twelve months was 19.36%, showing a 2.49% increase compared to the 16.87% recorded in January 2022.

The components of the food sub-index increased by 24.32% in January 2023 on a year-on-year basis, which was 7.19% points higher compared to the rate recorded in January 2022 (17.13%). The rise in food inflation was caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other tubers, Fish, vegetable, fruits, and meat.
On a month-on-month basis, the food sub-index in January 2023 was 2.08%, this was 0.19% higher compared to the rate recorded in December 2022 (1.89%). This increase was attributed to the increase in prices of some food items like Oil and fat, Bread and Cereals, Fish, Potatoes, Yam, and Tubers.

The average annual rate of food inflation for the twelve months ending January 2023 over the previous twelve-month average was 21.53%, which was 1.44% points increase from the average annual rate of change recorded in January 2022 (20.09%).

The Core Inflation rate, that is all-items index less farm produce, which excludes the prices of volatile agricultural produce recorded at 19.16% in January 2023 on a year-on-year basis; the index increased by 5.29% when compared to the 13.87% recorded in January 2022.
On a month-on-month basis, the core inflation rate was 1.82% in January 2023.

This shows a rise of 0.49% when compared to the 1.33% recorded in December 2022. The highest increases 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.
The average twelve-month annual inflation rate was 16.52% for the twelve months ending January 2023; this was 3.19% points higher than the 13.33% recorded in January 2022.
The index for the urban consumers on a year-on-year basis for January 2023, stood at 22.55%, this was 6.38% points higher compared to the 16.17% recorded in January 2022.

Similarly, on a month-on-month basis, the urban inflation rate was 1.98% in January 2023, this was 0.17% points higher compared to December 2022 (1.80%).
The corresponding twelve-month average for the urban inflation rate was 19.91% in January 2023. This was 1.86% points higher compared to the 17.44% reported in January 2022.

While the rural consumers’ inflation rate in January 2023 stood at 21.13% on a year-on-year basis; this was 6.08% higher compared to the 15.06% recorded in January 2022.
On a month-on-month basis, the rural inflation rate in January 2023 was 1.77%, which is 0.14% points higher compared to December 2022 (1.63%).

The corresponding twelve-month average for the rural inflation rate in 2023 was 18.84%. This was 2.53% higher compared to the 16.31% recorded in January 2022.
In the analyses of the states profiles. The all-item index for January 2023, on a year-on-year basis was highest in Bauchi (24.79%), Ondo (24.54%), Anambra (24.51%), while Jigawa (19.09%), Borno (19.62%) and Sokoto (19.90%) recorded the slowest rise in headline year-on-year inflation.
On a month-on-month basis, however, January 2023 recorded the highest increases in Lagos (2.91%), Taraba (2.84%), Ondo (2.68%), while Yobe (0.54%), Jigawa (0.73%) and Oyo (0.87%) recorded the slowest rise on month-on-month inflation.

In the Assessment of the food sub-index at the states level in January 2023, the food inflation rate on a year-on-year basis was highest in Kwara (29.03%), Lagos (27.67%) and Ondo (27.38%), while Jigawa (19.22%), Sokoto (20.80%) and Yobe (21.32%) recorded the slowest rise in year-on-year food inflation.
On the other hand, the month-on-month food inflation in January 2023 was highest in Lagos (3.67%), Ogun (3.54%) and Ekiti (3.32%), while Yobe (-0.50%), Jigawa (0.18%) and Kebbi (0.92%) recorded the slowest rise on month-on-month inflation.

(NBS Media)