The rate at which prices of goods and services rise soared to a 46-month high as the inflation figure for January 2021 stood at 16.47 per cent, according to the latest data released by the National Bureau of Statistics.
The latest level of inflation was last seen in March 2017 when inflation was around 17.26 per cent. The January inflation figure indicated a .071 per cent increase over the 15.75 per cent recorded in December 2020.
The NBS report showed that Nigeria’s inflation rate rose sharply to 16.47 per cent (year-on-year) in January 2021 indicating a 0.71 per cent point higher than15.75 the per cent rate recorded in December 2020.
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The composite food index rose by 20.57 per cent in January 2021 compared to 19.56 per cent in December 2020.
According to the report, increases were recorded in all Classification of Individual Consumption According to Purpose division that yielded the headline index.
In contrast, the rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam, and other tubers, meat, fruits, vegetable, fish, oils, and fats.
“The percentage change in the average composite CPI for the 12 months ending January 2021 over the average CPI for the previous 12 months period was 13.62 per cent, representing a 0.37 percentage point increase over 13.25 per cent recorded in December 2020.
“The average annual rate of change of the Food sub-index for the 12-month period ending January 2021 over the previous twelve-month average was 16.66 per cent, 0.49 per cent points higher than the average annual rate of change recorded in December 2020 (16.17 per cent),” the report stated.
The food sub-index increased by 1.83 per cent in January 2021, down by 0.22 per cent points from 2.05 per cent recorded in December 2020. The average annual rate of change of the Food sub-index for the 12 months ending January 2021 over the previous twelve-month average was 16.66 per cent, 0.49 per cent points higher than the average annual rate of change recorded in December 2020 (16.17 per cent).
The urban inflation rate increased by 17.03 per cent (year-on-year) in January 2021 from 16.33 per cent recorded in December 2020, while the rural inflation rate increased by 15.92 per cent in January 2021, from 15.20 per cent in December 2020.
The corresponding 12-month year-on-year average percentage change for the urban index was 14.23 per cent in January 2021. This is higher than the 13.86 per cent reported in December 2020, while the corresponding rural inflation rate in January 2021 was 13.04 per cent compared to 12.67 per cent recorded in December 2020.
Analysts had predicted a rising trend in inflation for this year, and it was expected that the figure would cross the 16 per cent mark by the end of the first quarter due to the impact of increases in electricity tariff and fuel prices.
It is expected that the rising trend in inflation figures will continue as Nigerians will have to pay more for goods and services.
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