“In January 2022, the urban inflation rate grew to 16.17 percent from 17.03 percent in January 2021, while the rural inflation rate increased to 15.06 percent from 15.92 percent in January 2021.
“On a month-to-month basis, the urban index grew to 1.53 percent in January 2022, down 0.34 percent from the pace of 1.87 percent in December 2021.”
“The rural index also increased to 1.42 percent in January 2022, down 0.35 percent points from 1.77 percent in December 2021,” according to the report.
What will Nigeria’s inflation rate be in 2020?
Nigeria’s inflation rate was 13.2 percent in 2020. Though the inflation rate in Nigeria has fluctuated significantly in recent years, it has tended to decline from 2001 to 2020, ending at 13.2 percent in 2020.
What is the current inflation rate in Nigeria?
The inflation rate in Nigeria in 2019 was 11.40 percent, down 0.7 percent from 2018. Nigeria’s 2018 inflation rate was 12.09 percent, down 4.43 percent from 2017. In 2017, Nigeria’s inflation rate was 16.52 percent, up 0.85 percent from 2016. Nigeria’s 2016 inflation rate was 15.68 percent, up 6.67 percent from 2015.
In 2021, what is the current rate of inflation?
The United States’ annual inflation rate has risen from 3.2 percent in 2011 to 4.7 percent in 2021. This suggests that the dollar’s purchasing power has deteriorated in recent years.
How much is inflation?
Inflation is defined as a rise in the Consumer Price Index (CPI), which is a weighted average of prices for various items. The index’s selection of commodities is determined by which items are regarded representative of a common consumption basket. As a result, the index will include different commodities based on the country and the majority of the population’s purchasing preferences. Some commodities may see a decrease in price, while others may see an increase, hence the overall value of the CPI will be determined by the weight of each good in relation to the entire basket. The percentage change in the CPI from the same month the previous year is referred to as annual inflation.
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Why is Nigeria’s inflation so high?
The National Bureau of Statistics reported Wednesday that Nigeria’s inflation rate declined for the eighth consecutive month in November to 15.40 percent, down from 15.99 percent a month earlier, despite continued increases in food costs.
The Consumer Price Index, which measures the cost of goods and services, climbed by 15.40 percent year over year in November 2021, according to the statistics office.
This is 0.51 percentage points higher than the rate of 14.89 percent in November 2020.
“According to the report, “increases were reported in all COICOP divisions that provided the Headline index.”
“The Headline index climbed by 1.08 percent month over month in November 2021, which is 0.10 percent higher than the rate of 0.98 percent in October 2021.”
According to the agency, the composite food index increased by 17.21% in November 2021, compared to 18.30% in November 2020.
According to the NBS, price rises in bread and cereals, fish, food products, potatoes, yams, and other tubers, oil and fats, milk, cheese, and eggs, as well as coffee, tea, and cocoa, contributed to the increase in the food index.
The food sub-index climbed by 1.07 percent month over month in November 2021, up 0.16 percent points from 0.91 percent in October 2021, according to the report.
Why is Nigeria’s inflation so high?
Nigerians now spend nearly three times the price they did in 2014 for the same amount of products and services. According to the World Bank, inflation pushed many Nigerians into poverty in 2021. If the Nigerian economy’s current inflation crisis persists in 2022, there is no doubt that economic hardship will worsen, making it more difficult for many Nigerians to survive.
Nigeria’s high inflation can be attributed to a high exchange rate, high taxes, insecurity, insufficient infrastructure, and corruption. The cost of conducting business in Nigeria has skyrocketed due to inflation. Manufacturers are struggling to keep up with rising production costs.
Segun Ajayi-Kadir, the director-general of the Manufacturers Association of Nigeria (MAN), confirmed that the manufacturing sector was still fighting for existence because of the high cost of production. He went on to say that Nigeria’s current inflationary situation was hurting the industrial sector’s profitability and was largely to blame for the country’s low competitiveness.
In Nigeria, the increase in the exchange rate has been a significant challenge. In 2021, it pushed up the prices of imported raw materials, production costs, and commodity prices.
According to a study published by the Central Bank of Nigeria (CBN), the official average exchange rate of a US dollar to the naira in 2021 was N403.5858. The average exchange rate on the parallel market was as high as N560. Nigeria’s 2022 budget forecasted an N410.15 per dollar exchange rate. If the expected rate holds, the parallel market exchange rate could reach to N560 in 2022. The already high cost of production would be exacerbated by a high exchange rate, resulting in increased inflation in 2022.
Insecurity in Nigeria’s Northern and Middle Belt regions could lead to high prices in 2022. Fear of being abducted, raped, or killed by terrorists has kept the majority of farmers from returning to farming. In 2022, this might result in food shortages and high agricultural product prices in Nigeria.
Is inflation beneficial or harmful?
- Inflation, according to economists, occurs when the supply of money exceeds the demand for it.
- When inflation helps to raise consumer demand and consumption, which drives economic growth, it is considered as a positive.
- Some people believe inflation is necessary to prevent deflation, while others say it is a drag on the economy.
- Some inflation, according to John Maynard Keynes, helps to avoid the Paradox of Thrift, or postponed consumption.