Nigeria's inflation rate has hit a record high in 20 months leaving market observers very worried.
Goods
According to data released by the National Bureau of Statistics on Tuesday, the consumer price index, which measures inflation, rose to 12.13% in January; hitting its highest point in 20 months.
The index increased from the 11.98% recorded in December.
The last time inflation was in this region was in April 2018.
“The consumer price index, (CPI) which measures inflation increased by 12.13% (year-on-year) in January 2020. This is 0.15 percentage points higher than the rate recorded in December 2019 (11.98%).
“On a month-on-month basis, the headline index increased by 0.87% in January 2020, this is 0.02% rate higher than the rate recorded in December 2019 (0.85%).”
According to the report, the urban inflation rate rose to 12.78% on a year-on-year in January 2020 from 12.62% in December 2019, while the rural inflation rate increased by 11.54% in January 2020 from 11.41% in December 2019.
“The composite food index rose by 14.85% in January 2020 compared to 14.67% 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%), Ogun (18.72%) and Nasarawa (17.07%), while Bayelsa (12.91%), Delta (11.57%) and Benue (11.33%) recorded the slowest rise.”
On month on month basis, 2020 food inflation was highest in Ondo (2.95%), Anambra (2.61%) and Abuja (2.57%), while Benue, Kogi and River recorded price deflation (general decrease in the general price level of food or a negative food inflation rate).