The National Bureau of Statistics (NBS) revealed the January 2022 inflation figures. The statistics and major drivers of inflation are highlighted in the following sections.
- After a surprise surge in December, the Core inflation rate has begun to decrease once more. The year-on-year (Y-o-Y) inflation rate in January 2022 was 15.6%, down 0.03% from December 2021 statistics. In January 2022, the month-over-month (M-o-M) inflation rate was 1.47 percent, down 0.35% from the previous month.
- The Food Index inflation, which is regarded to be the major contributor to the core inflation, was 17.13% Y-o-Y, down 0.24 % from December’s Y-o-Y number. The Food Index inflation rate for January 2022 increased by 1.62% M-o-M, down 0.57 % from December’s figures.
- In January 2022, the Y-o-Y Non-food index inflation rate remained unchanged at 13.87%. The monthly inflation rate, on the other hand, was 1.25%, up 0.13% from December 2021.
Comments on causes of food index and non-food index inflation rate
The rise in the price of food products like bread, cereals, meat, fish, potatoes, yam and other tubers, soft drinks, oils and fats, and fruits contributed to the rise in the food index inflation rate. The growing prices of electricity, liquid fuel, wine, tobacco, spirit, solid fuels, cleaning, repair, and hire of footwear and clothing materials, as well as pharmaceutical products, had a significant impact on core inflation.
Although the Y-o-Y inflation rate of 15.6% is lower than the previous month’s (15.63%), it reveals that the prices of food and service in the country are still growing rapidly. As has been the case for the most part of last year, inflation may continue to decline downwards. However, rising inflation rates in the United States may result in higher costs for imported products and services in the nation. The government can address these excessive rising prices by substituting imported goods, ensuring food security, and reducing insecurity in the country.
Source: NBS and FCSL Research