Nigeria’s headline inflation surged to 29.90% in January 2024, a significant uptick from the December 2023 figure of 28.92%, according to the latest data released by the National Bureau of Statistics (NBS).
The NBS report noted that the 0.98% increase between December 2023 and January 2024 reflects ongoing price pressures across various sectors of the economy.
On a year-on-year basis, January 2024’s headline inflation rate stood at 8.08% higher than the rate recorded in January 2023, which was 21.82%.
Food inflation, a critical component of overall inflation, rose to 35.41% year-on-year, indicating an 11.10% increase compared to January 2023.
The spike in food prices was attributed to significant increases in the costs of bread and cereals, potatoes, yam, oil, fat, fish, meat, fruit, coffee, tea, and cocoa.
The data release comes amidst escalating concerns over the cost of living and its implications for households across the country.
President Bola Tinubu’s directive to release grains aims to mitigate the impact of rising food costs, which have been exacerbated by the removal of fuel subsidies and insecurity in various regions.
Despite the challenging economic environment, the Central Bank of Nigeria (CBN) remains hopeful that inflationary pressures will ease in 2024, targeting a rate of 21.4% through inflation-targeting policies and improved agricultural productivity.
However, the depreciation of the naira continues to pose challenges, further complicating efforts to stabilize prices and restore economic confidence.
