What you need to know: December inflation rate at 21.34%

The following are major highlights of the report.

The annual or headline inflation rate measures the rate of increase in prices.

In December 2022, the rate of increase in prices of goods and services across the country was 21.34 per cent.

December 2022 inflation rate showed a decline of 0.13% when compared to November 2022 inflation rate.

December 2022 inflation rate was 5.72% points higher compared to the rate recorded in December 2021, which was (15.63%).

The high inflation rate in December 2022 was driven by sharp increase in demand usually experience during the festive season, increase in the cost of production e.g. increase in energy cost, transportation cost, exchange rate depreciation etc.

Food inflation rate in December 2022 was 23.75% on a year-on-year basis; which was 6.38% higher compared to the rate recorded in December 2021 (17.37%).

The rise in the food inflation was caused by increases in prices of Bread and cereals, Oil and fat, Potatoes, Yam and other tubers, Fish, Food Product n.e.c,.

On a month-on-month basis, the food inflation rate in December was 1.89%, this was 0.49% higher compared to the rate recorded in November 2022 (1.40%).

The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 18.49% in December 2022 on a year-on-year basis; up by 4.62% when compared to the 13.87% recorded in December 2021.
On a month-on-month basis, the core inflation rate was 1.33% in December 2022. It stood at 1.67% in November 2022, down by 0.34%.
The highest increases were recorded in prices of Gas, Liquid fuel, Passenger transport by Air, Vehicles spare parts, Fuels and lubricants for personal transport equipment, Solid fuel etc.
In December 2022, all items inflation rate on a year-on-year basis was highest in Bauchi (23.79%), Kogi (23.35%), Anambra (23.13%), while Taraba (18.98%), Osun (19.09%) and Kwara (19.18%) recorded the slowest rise in headline year-on-year inflation.

On a month-on-month basis, however, December 2022 recorded the highest increases in Oyo (3.48%), Abuja (3.05%), Sokoto (2.58%), while Ebonyi (0.11%), Ekiti (0.68%) and Nasarawa (0.70%) recorded the slowest rise on month-on-month inflation.

In December 2022, food inflation on a year-on-year basis was highest in Kwara (27.90%), Imo (26.94%) and Ebonyi (26.28%), while Sokoto (20.90%), Taraba (21.59%) and Cross River (21.71%) recorded the slowest rise in year-on-year food inflation.

On a month-on-month basis, however, December 2022 food inflation was highest in Sokoto (3.38%), Oyo (3.10%) and Kaduna (2.97%), while Nasarawa (0.06%), Osun (0.70%) and Kogi (0.76%) recorded the slowest rise on month-on-month inflation.

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