In January 2023, the headline inflation rate rose to 21.82% compared to December 2022 headline inflation rate which was 21.34%. Looking at the trend, the January 2023 inflation rate showed an increase of 0.47% points when compared to December 2022 inflation rate. However, on a year-on-year basis, the headline inflation rate was 6.22% points higher compared to the rate recorded in January 2022, which was 15.60% (National Bureau of Statistics, Nigeria, January 2023). This is the highest inflation rate since 2005 largely due to relatively high demand, low supply, high fuel prices and challenging macroeconomic conditions.
The food inflation rate in January 2023 was 24.32% on a year-on-year basis; which was 7.19% points higher compared to the rate recorded in January 2022 (17.13%). The rise in food inflation was caused by increases in prices of Bread and Cereals, Oil and Fat, Potatoes, Yam and Other Tubers, Fish, Vegetable, Fruits, Meat. On a month-on-month basis, the food inflation rate in January 2023 was 2.08%, this was 0.20% points higher compared to the rate recorded in December 2022 (1.89%). This increase was attributed to increase in the prices of some food items like Oil and Fat, Bread and Cereals, Fish, Potatoes, Yam & Tubers, etc. The average annual rate of food inflation for the twelve -months ending January 2023 over the previous twelve-months average was 21.53%, which was a 1.44% points increase from the average annual rate of change recorded in January 2022 (20.09%).
According to WFP October 2022 Market Monitoring Report in Borno and Yobe states, prices of staple food remained stable in November as compared to October due to harvests. However the year-on-year increase for key staples is significant for both states, particularly for maize flour, local rice and groundnut which increased by more than 25 percent.