Nigeria’s inflation climbs to 3-year high, settles at 15.75% in Dec~NBS
By Oludare Mayowa
Nigerian economic woes continue to increase as the consumer inflation index for December climbed to 15.75 percent from 14.89 percent in the previous month, the highest in three years, according to the latest data from the National Bureau of Statistics (NBS).
NBS’s latest report released on Friday showed that the country’s inflation figure has jumped for the 16th straight month of increases as the cost of living continues to soar in the country.
Nigeria’s inflation rate was last seen at this level in November 2017 when it stood at 15.90 percent.
“The consumer price index, (CPI) which measures inflation increased by 15.75 percent (year-on-year) in December 2020. This is 0.86 percent points higher than the rate recorded in November 2020 (14.89) percent,” NBS wrote in its latest report.
The statistics bureau also stated that the composite food index rose by 19.56 percent in December 2020 compared to 18.30 percent in the previous month.
“The average annual rate of change of the Food sub-index for the twelve-month period ending December 2020 over the previous twelve-month average was 16.17 percent, 0.42 percent points from the average annual rate of change recorded in November 2020 (15.75) percent.
“This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Meat, Fruits, Vegetable, Fish and Oils and fats,” the NBS said.
Analysts projections of inflation figure have been moderate compared with the NBS report.
For instance, in its report last week, the Financial Derivatives Company Limited had projected inflation to rise to 15.4 percent in December.
It was believed that the costs of living have been greatly impacted by the recent hike in fuel pump prices, electricity tariff hike and banditry and insurgency which have hampered the cultivation of food crops in the Northeast and North West.
With the nation’s slipping into recession in the third quarter of last year, Nigerians are expected to feel more economic pains as the inflation figure soar.
Experts, however, believed that with the reopening of the land borders by the government, food inflation may decelerate and impacted positively on the overall consumer inflation index.