JUST IN: Nigeria’s Inflation Rate Surges to 29.90% in January 2024

In a recent report released by the National Bureau of Statistics, Nigeria’s headline inflation rate for January 2024 has surged to 29.90%, marking a notable increase of 0.98% from the December 2023 figure of 28.92%.

The report indicates that, on a year-on-year basis, the headline inflation rate in January 2024 was 8.08% points higher compared to the same month in 2023, reflecting a substantial rise from 21.82% to 29.90%. Moreover, on a month-on-month basis, the inflation rate for January 2024 increased by 0.35%, reaching 2.64%, compared to December 2023’s rate of 2.29%.

The average Consumer Price Index (CPI) for the twelve months ending January 2024 saw a significant increase of 5.99%, reaching 25.35%, compared to 19.36% recorded in January 2023. The CPI measures the average change over time in the prices of goods and services consumed by people for day-to-day living.

Urban inflation experienced a year-on-year increase of 9.40%, reaching 31.95% in January 2024, compared to 22.55% in January 2023. On a month-on-month basis, urban inflation increased by 0.30%, reaching 2.72% in January 2024.

Meanwhile, rural inflation for January 2024 recorded a year-on-year increase of 6.97%, rising to 28.10%, compared to 21.13% in January 2023. On a month-on-month basis, rural inflation increased by 0.40%, reaching 2.57% in January 2024.

Food inflation, a crucial component, rose significantly to 35.41% on a year-on-year basis in January 2024, showing an 11.10% increase from January 2023. On a month-on-month basis, the food inflation rate increased by 0.49%, reaching 3.21% in January 2024.

The report attributes the rise in food inflation to increases in the prices of various items, including Bread and cereals, Potatoes, Yam and other Tubers, Oil and fat, Fish, Meat, Fruit, Coffee, Tea, and Cocoa.

The average annual rate of food inflation for the twelve months ending January 2024 was 28.91%, indicating a 7.38% points increase from the average annual rate recorded in January 2023 (21.53%).