The National Bureau of Statistics says Nigeria’s inflation rate was 34.80 percent in December — up from 33.60 percent in November.
The data is captured in NBS’ consumer price index (CPI) report published on Wednesday, January 15, 2024.
According to the NBS, transportation costs were the main drivers of the price increases.
Food inflation slowed slightly to 39.8% from 39.9% in November and the core measure — excluding agricultural produce and energy costs —quickened to 29.3% in December from 28.75%. Prices rose 2.4% in the month.
The methodology used to compile December’s inflation is being revised and the next data release will reflect changes being implemented by the NBS. It’s rebasing and adding more items to the consumer price index for the first time in 16 years, with 2024 as the new reference year.
The updated data may result in softer inflation as the weighting of food, which consumes the bulk of household budgets, has been reduced to 40.1% from 51.8%. The housing, energy and electricity category will shrink to 8.4% from 16.7%.
Surging inflation in Africa’s most-populous nation led the Nigerian central bank’s monetary policy committee to increase its key interest rate by 875 basis points last year. Price growth is expected to start easing this year, Governor Olayemi Cardoso said in November.
The central bank will announce its next rate decision on Feb. 18.
