- Kwara, Lagos, Ondo record highest food inflation year -on -year
BY BAMIDELE FAMOOFO
In January 2023, the headline inflation rate of Africa’s largest economy rose to 21.82 percent compared to December 2022 headline inflation rate which was 21.34 percent, according to data released by the National Bureau of Statistics on Wednesday.
Looking at the trend, the January 2023 inflation rate showed an increase of 0.47 percent points when compared to December 2022 inflation rate.
However, on a year-on-year basis, the headline inflation rate was 6.22 percent points higher compared to the rate recorded in January 2022, which was 15.60 percent. This shows that the headline inflation rate (year-on-year basis) increased in the month of January 2023 when compared to the same month in the preceding year (January 2022).
The contributions of items on a class basis to the increase in the headline index are: Bread and Cereal (21.67%), Actual and Imputed Rent (7.74%), Potatoes, Yam and Tuber (6.06%), Vegetable (5.44%), and Meat (4.78%).
On a month-on-month basis, the percentage change in the All-Items Index in January 2023 was 1.87 percent, which was 0.15 percent points higher than the rate recorded in December 2022 (1.71%). This means that in the month of January 2023, on average, the general price level was 0.15 percent higher relative to December 2022.
The percentage change in the average CPI for the twelve months period ending January 2023 over the average of the CPI for the previous twelve months period was 19.36 percent, showing a 2.49 percent increase compared to 16.87 percent recorded in January 2022.
The food inflation rate in January 2023 was 24.32 percent on a year-on-year basis; which was 7.19 percent points higher compared to the rate recorded in January 2022 (17.13%). The rise in food inflation was caused by increases in prices of Bread and Cereals, Oil and Fat, Potatoes, Yam and Other Tubers, Fish, Vegetable, Fruits, Meat, and Food Products n.e.c. On a month-on-month basis, the food inflation rate in January 2023 was 2.08 percent, this was 0.20 percent points higher compared to the rate recorded in December 2022 (1.89%).
This increase was attributed to increase in the prices of some food items like Oil and Fat, Bread and Cereals, Fish, Potatoes, Yam & Tubers, etc. The average annual rate of food inflation for the twelve -months ending January 2023 over the previous twelve-month average was 21.53 percent, which was a 1.44 percent points increase from the average annual rate of change recorded in January 2022 (20.09%).
In January 2023, food inflation on a year-on-year basis was highest in Kwara (29.03%), Lagos (27.67%), and Ondo (27.38%), while Jigawa (19.22%), Sokoto (20.80%) and Yobe (21.32%) recorded the slowest rise in year-on-year food inflation.
On a month-on-month basis, however, January 2023 food inflation was highest in Lagos (3.67%), Ogun (3.54%), and Ekiti (3.32%), while Yobe (-0.50%), Jigawa (0.18%) and Kebbi (0.92%) recorded the slowest rise on month-on-month inflation.