Inflation Hits Near Two-Year High in January at 12.13%
By UDO ONYEKA
Annual inflation in Nigeria rose in January to its highest level in nearly two years, data released by National Bureau of Statistics showed, as prices increased across all categories measured.
Inflation stood at 12.13 per cent in January, compared with 11.98 per cent in December, marking the fifth straight month of increases.
The last time inflation was in this region was in April 2018.
“The consumer price index, (CPI) which measures inflation increased by 12.13 per cent (year-on-year) in January 2020. This is 0.15 percentage points higher than the rate recorded in December 2019 (11.98 per cent ).
“On a month-on-month basis, the headline index increased by 0.87 per cent in January 2020, this is 0.02 per cent rate higher than the rate recorded in December 2019 (0.85 per cent ).”
According to the report, the urban inflation rate rose to 12.78 per cent on a year-on-year in January 2020 from 12.62 per cnt in December 2019, while the rural inflation rate increased by 11.54 per cent in January 2020 from 11.41 per cent in December 2019.
“The composite food index rose by 14.85 per cent in January 2020 compared to 14.67 per cent in December 2019,” the report read.
“This rise in the food index was caused by increases in prices of bread and cereals, meat, oils and fats, potatoes, yam and other tubers and fish
“In January 2020, food inflation on a year on year basis was highest in Sokoto (19.08 per cent), Ogun (18.72 per cent ) and Nasarawa (17.07 per cent ), while Bayelsa (12.91 per cent ), Delta (11.57 per cent) and Benue (11.33 per cent ) recorded the slowest rise.”
On month on month basis, 2020 food inflation was highest in Ondo (2.95%), Anambra (2.61 per cent ) and Abuja (2.57 per cent ), while Benue, Kogi and River recorded price deflation (general decrease in the general price level of food or a negative food inflation rate).
The central bank has said it expects to keep monetary policy tight in 2020 to combat inflation and support the currency amidst slow growth. The bank, which has targeted single-digit inflation, held its main interest rate at 13.5% at its last meeting, in January