Nigeria’s headline inflation eases by 21.47% after 12 months slowdown

By Chioma Obinagwam

Nigeria’s headline inflation declined by 21.34% year on year (y/y) in December 2022, which is the first time it tilted southwards after a one year period.

Confiance News gathered from the National Bureau of Statistics (NBS) Twitter handle on Monday.

According to the report, although it eased in y/y in December 2022, it recorded an increase of 32 basis points (bps) to 1.71 percent from fro 1.39 percent it posted in November 2022.

“Headline Inflation for December 2022 was 21.34%, from 21.47% in November 2022.Food Inflation was 23.74% in December 2022, from 24.13% in November 2022. Urban inflation was 22.01%. Rural Inflation was 20.72%,” NBS tweeted.

Headline CPI for December 2022. Photo Credit: National Bureau of Statistics.

The slowdown in the inflation was impacted by a dip in Food Inflation, which dropped to 23.74 percent in the review period (December 2022) from the 24.13 percent it posted in November of the same year.

Reacting to the report, Cordros Research (the research arm of Cordros Capital) said,”Nigeria’s headline inflation eased for the first time in 12 months, settling at 21.34% y/y in December 2022 (November: 21.47% y/y). The outturn is 36bps above Cordros’ estimate (20.98% y/y) and 46bps lower than Bloomberg’s median consensus estimate (21.80% y/y).

Confiance News also gathered from Corporate Finance Institute (CFI) that Headline Inflation is the total inflation in an economy.

“The headline inflation figure includes inflation in a basket of goods that includes commodities like food and energy. It is different from core inflation, which excludes food and energy prices while calculating inflation,” CFI explained.



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