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Nigeria’s Consumer Price Index (CPI) accelerated to 12.13 per cent year-on-year in January 2020, according to the monthly inflation report released today by the National Bureau of Statistics (NBS). This represents an increase of 15 basis points (bps) (or 0.15 percentage point) compared to 11.98 per cent recorded in December 2019. It is also the fifth consecutive monthly rise in the CPI, which measures inflation.

On month-on-month basis, the headline inflation increased by 0.87 per cent in January, or 0.02 percentage points higher than the rate recorded in the previous month. The NBS said there were increases in all major indices.

According to the NBS, food inflation rose by 18 bps to 14.85 per cent last month, compared to 14.67 per cent reported in December. The rise in the food inflation was caused by increases in prices of bread and cereals; meat, oils and fats; potatoes, yam and other tubers; and fish.

Core inflation, which excludes the prices of volatile agricultural produce, stood at 9.35 per cent in January, rising by 0.02 percentage point when compared to the preceding review period. The statistics agency said the highest increases were recorded in prices of hospital services, vehicle spare parts, cleaning, repair and hire of clothing, shoes and other footwear.

Price increases were also recorded in glassware, tableware and household utensil; hairdressing saloons and personal grooming establishments; repair and hire of footwear; garments and passenger transport by air.

The headline inflation had declined to 11.02 per cent in August 2019. Between August of last year and January 2020, data from the NBS shows inflation rose by 111 bps. Part of the inflation pressure has been attributed to the Nigerian border closures, which had taken effect on 20 August, 2019.

In the review period, urban inflation stood at 12.78 per cent, rising by 16 bps from 12.62 per cent recorded in December, while the rural inflation rate rose by 13 bps from 11.41 per cent in December to 11.54 per cent last month.

Reacting to the latest inflation figures, CardinalStone Partners, an investment advisory firm, said the inflation report for January is largely in line with Bloomberg consensus of 12.12 per cent.