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Inflation Rate Declines By 0.13% In December

According to a National Bureau of Statistics (NBS) report, the headline inflation rate decreased by 0.13% over the period under review from November 2022’s headline inflation rate of 21.47% to 21.34% in December 2022.

According to the research, which was made public on Monday in Abuja, the headline inflation rate was 5.72% points higher in December 2022 than it was in December 2021 (15.63%).

According to the report, “In December 2022, the headline inflation rate eased to 21.34% compared to November 2022 headline inflation rate which was 21.47%.

“Looking at the trend, December 2022 inflation rate showed a decline of 0.13% when compared to November 2022 inflation rate.

“However, on a year on year basis, the headline inflation rate was 5.72% points higher com
pared to the rate recorded in December 2021, which was (15.63%).

“This shows that the headline inflation rate increased in the month of December 2022 when compared to the same month in the preceding year (i.e., December 2021).

“On a month-on-month basis, the percentage change in the All Items Index in December 2022 was 1.71%, which was 0.32% higher than the rate recorded in November 2022 (1.39%).

“This means that in the month of December 2022, the general price level was 0.32% 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%, showing
1.89% increase compared to the 16.95% recorded in December 2021.

“The increases were recorded in all COICOP divisions that yielded the Headline index most especially in Food & Non-Alcoholic Beverages, Transport and Miscellaneous Goods and Services.

“Basically, the likely factors responsible to increase in inflation rate in monthonmonth can be attributed to the sharp increase in demand usually experience during the festive season, increase in the cost of production e.g. increase in energy cost, transportation cost, exchange rate depreciation etc.

“On a year-on-year basis, in the month of December 2022, the urban inflation rate was
22.01%, this was 5.85% higher compared to the 16.17% recorded in December 2021.

“On a month-on-month basis, the urban inflation rate was 1.80% in December 2022, this was 0.31% higher compared to November 2022 (1.50%).

“The corresponding twelve-month average for
the urban inflation rate was 19.38% in December 2022. This was 1.86% higher compared to the 17.52% reported in December 2021.

“The rural inflation rate in December 2022 was 20.72% on a year-on-year basis; this was 5.61% higher compared to the 15.11% recorded in December 2021. On a month-on-month basis, the rural inflation rate in December 2022 was 1.63%, up by 0.33% compared to November 2022 (1.30%).

“The corresponding twelve-months average for the rural inflation rate in December 2022 was 18.34%. This was 1.94% higher compared to the 16.40% recorded in December 2021.

“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%).

“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, etc.

“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%)” reads the statement in parts.

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