Nigeria’s Headline Inflation Slows in January

Nigeria’s Consumer Price Index (CPI) for January 2022 expanded by 15.60% year-on-year, down from 15.63% recorded in December 2021. The composite food sub-index grew by 17.13% year-on-year (vs. 17.37% recorded in December 2021) while the All items less farm produce sub-index stood at 13.87% year-on-year according to published data from the National Bureau of Statistics (NBS).

Please see below an overview of December’s inflation performance:

• The headline inflation rate for January 2022 grew by 15.60% y/y, slightly lower than 15.63% in December 2021. Similarly, on a month-on-month basis, consumer prices grew by 1.47% (a 34bps decline from 1.82% recorded in December 2021).

• The composite food sub-index for January 2022 rose by 17.13% y/y (vs. 17.37% in December 2021), while the Core (All items less farm produce) sub-index stood at 13.87% y/y. On a month-on-month basis, the food sub index grew 1.62% as against 2.19% in December while the core sub-index expanded by 1.25% compared to 1.12% in the prior month.

• The urban inflation rate stood at 16.17% y/y while the rural inflation rate rose by 15.06% y/y (a 4bps dip from 15.11% recorded in December 2021).

We believe that the newly reported inflation statistics correctly imply additional economic progress and will likely affect the monetary policy committee’s decision at the next meeting.

Leave a Reply

Your email address will not be published.