…As Bauchi Consumers Pay Highest For Goods, Services
As predicted by economists, Nigeria’s Headline inflation rate increased to 34.80% in December 2024, relative to 34.60% rate recorded in the nation’s general price level in the preceding month, representing a marginal increase of 0.20% month-on-month, the National Bureau of Statistics (NBS) has reported.
The CPI measures the average change over time in the prices of goods and services consumed by people for day-to-day living.
In its ‘Consumer Price Index December 2024’ report released on Wednesday, the statistics agency attributed the rise in the inflation rate to festive period increases in demand for goods and services.
It clarified, however, that on a year-on-year basis, the Headline inflation rate was 5.87% higher than the 28.92% rate recorded in December 2023, adding that when analyzed on a month-on-month basis, the Headline inflation rate in December 2024 was 2.44%, which was 0.20% lower than the 2.64% rate recorded in the preceding month.
According to the CPI data, the percentage change in the average CPI for the twelve months ending December 2024 over the average for the previous twelve-month period was 33.24%, showing an 8.58% increase compared to 24.66% recorded in December 2023.
The Bureau reported that on a year-on-year basis, the Urban inflation rate in the month under review peaked at 37.29%, representing 6.30% points higher compared to the 31.00% recorded in December 2023, while on a month-on-month basis, the Urban inflation rate was 2.56% in December 2024, showing 0.21% points lower compared to 2.77% recorded in the preceding month.
It noted that the corresponding twelve-month average for the Urban inflation rate was 35.57% in December 2024, which was 9.36% points higher than the 26.22% rate recorded in December 2023 .
Similarly, the report reflected that the Rural inflation rate in December 2024 surged to 32.47% on a year-on-year basis, indicating 5.37% higher compared to the 27.10% rate recorded in December 2023.
On a month-on-month basis, the CPI data showed that Rural inflation rate in December 2024 was 2.32%, down by 0.19% points compared to 2.51% recorded in the preceding month, and the corresponding twelve-month average for the Rural inflation rate in December 2024 was 31.14%, representing 7.89% higher compared to the 23.25% recorded in December 2023.
A further analysis of the report on items-by-items basis revealed that the Food inflation rate in month under review was 39.84% on a year-on-year basis, which was 5.91% points higher compared to the 33.93% rate recorded in December 2023.
The statistics agency attributed the rise in Food inflation on a year-on-year basis to increases in prices of the following items; Yam, Water Yam, Sweet Potatoes, etc (Potatoes, Yam & Other Tubers Class), Beer, Pinto (Tobacco Class), Guinea Corn, Maize Grains, Rice, etc (Bread and Cereals Class), and Dried Fish-Sadine, Catfish Dried, etc (Fish Class).
It further clarified that on a month-on-month basis, the Food inflation rate in December 2024 was 2.66%, showing 0.32% decrease compared to the 2.98% rate recorded in November 2024, linking the drop in the Food inflation to the average prices of Local Beer (Burukutu), Pinto (Tobacco Class), Fruit Juice in tin, Malt drinks, etc (Soft Drinks Class), Rice, Millet, Maize flour, etc (Bread and Cereals Class) and Water Yam, Irish Potatoes, Coco Yam, etc (Potatoes, Yam & Other Tubers Class).
Overall, the Bureau maintained that the average annual rate of Food inflation for the twelve months ending December 2024 over the previous twelve-month average was 39.12%, which was 11.16% points higher compared with the 27.96% average annual rate of change recorded in the corresponding month of 2023.
In addition, it reported that the “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy, increased to 29.28% in December 2024 on a year-on-year basis, indicating 6.21% increase when compared to the 23.06% recorded in December 2023.
According to the data, the Bureau attributed the highest increases to surges in prices of Taxi journey per drop, Bus journey intercity, Journey by motorcycle, etc (under Passenger Transport by Road Class), Meal at a local Restaurant (Accommodation Service Class), hair cut service, women’s hair-dressing, women hair brush etc (Hairdressing salons & personal grooming establishments Class), and Women hand bag, Traveling bags (Medium size), Suitcase etc (Appliances, articles and products for personal care Class).
On a month-on-month basis, it reported that the Core Inflation rate was 2.24% in the month under review compared to 1.83% recorded in November 2024, indicating 0.41% increase, adding that the average twelve-month annual inflation rate of 27.15% for the twelve months ending December 2024, represents 6.39% points higher than the 20.76% recorded in December 2023.
On states’ profiles, the statistics agency disclosed in the ‘CPI December 2024’ report that ‘All Items inflation rate’ on a year-on-year basis was highest in Bauchi (44.06%), Sokoto (42.43%), Kebbi (41.47%), while Katsina (28.33%), Delta (29.23%), and Imo (29.99%) recorded the lowest rise in Headline inflation on Year-on-Year basis.
It clarified, however, that on a month-on-month basis, the highest increases in the month under review were recorded in Kogi (5.40%), Cross River (4.38%), Sokoto (4.29%), while Yobe (-1.82%), Kano (-0.57%) and Abuja (-0.02%) recorded decline on month-on-month inflation.
In addition, the Bureau reported that Food inflation on a year-on-year basis in December 2024 was highest in Sokoto (57.47%), Zamfara (46.39%), Edo (46.32%), while Ogun (34.24%), Rivers (35.43%), and Kwara (35.58%) recorded the slowest rise in Food inflation on year-on-year basis.
On a month-on-month basis, however, it reported that in the month under review, Food inflation was highest in Kogi (6.53%), Sokoto (6.21%), and Cross River (5.90%) while Yobe (-3.21%), Kano (-1.29%) and Abuja (-0.79%) recorded decline in Food inflation on month-on-month basis.
The Bureau clarified that on date computation on states, the CPI was weighted by consumption expenditure patterns that differ across states and locations, pointing out that accordingly, the weight assigned to a particular Food or Non-Food item may differ from state to state, thus making interstate comparisons of consumption basket inadvisable and potentially misleading.
