Inflation at 15.6% after eight straight months of decline
By Jeph Ajobaju, Chief Copy Editor
Inflation rate signed off December 2021 growing 0.2 per centage point to 15.6 per cent, up from 15.4 per cent in November, after eight straight months of decline.
That may presage what is in store in 2022, a year of election spending by moneybags, with Bola Tinubu donating N50 million to Niger State to tackle insecurity on 20 January, the day Governor Abubakar Bello endorsed his run for Aso Rock.
The more the money released into the economy, the higher the rate of inflation as a great volume of disposable income – particularly when free – acquires more goods and services, which then become scarce. Scarcity of products stokes up prices.
The National Bureau of Statistics (NBS) disclosed in its newly released consumer price index (CPI) report for December 2021 that food inflation rose 0.16 per cent points to 17.37 per cent from 17.21 per cent in November.
“The CPI which measures inflation increased by 15.63 per cent (year-on-year) in December 2021. This is 0.13 per cent points lower than the rate recorded in December 2020 (15.75) per cent,” the NBS said.
“This is showing slowing down in the rate when compared to the corresponding period of 2020. Increases were recorded in all Classification of Individual Consumption according to Purpose, COICOP, divisions that yielded the Headline index.
“On month-on-month basis, the Headline index increased by 1.82 per cent in December 2021, this is 0.74 per cent rate higher than the rate recorded in November 2021 (1.08) per cent.
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Urban, rural inflation
The NBS said percentage change in the average composite CPI for the 12 months ending December 2021 grew 16.95 per cent from 16.98 per cent over the average CPI for the previous 12 months but was down in November by 0.03 per cent points.
“Urban inflation rate increased by 16.17 per cent (year-on-year) in December 2021 from 16.33 per cent recorded in December 2020, while the rural inflation rate increased by 15.11 per cent in December 2021 from 15.20 per cent in December 2020.
“On a month-on-month basis, the urban index rose by 1.87 per cent in December 2021, up by 0.75 the rate recorded in November 2021 (1.12) per cent, while the rural index also rose by 1.77 per cent in December 2021, up by 0.73 the rate that was recorded in November 2021 (1.04) per cent.”
Food inflation
The report said composite food sub-index rose 17.37 per cent in December 2021, down by 2.19 per cent points against 19.56 per cent in December 2020.
“This rise in the food sub-index was caused by increases in prices of bread and cereals, food products, meat, fish, potatoes, yam and other tubers, soft drinks and fruit.
“On a month-on-month basis, the food sub-index increased by 2.19 per cent in December 2021, up by 1.12 per cent points from 1.07 per cent recorded in November 2021.
“The average annual rate of change of the Food sub-index for the twelve-month period ending December 2021 over the previous twelve-month average was 20.40 per cent, 0.22 per cent points lower from the average annual rate of change recorded in November 2021 (20.62) per cent.”