Inflation in Nigeria rose to 21.47 percent in November from 21.09 percent in October, accelerating for the 10th straight month as food prices surged, the National Bureau of Statistics (NBS) said on Thursday.
The NBS attributed the rise to a sharp increase in demand ahead of the Christmas season, import cost hikes due to the depreciation of the Naira, and a rise in production costs.
The consumer price index (CPI) measures the monthly change in prices paid by Nigerian consumers, and the NBS calculates the CPI as a weighted average of the prices of a basket of goods and services representing aggregate Nigerian consumption spending.
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The CPI is one of the most used measures of the inflation rate, and the inflation rate measures the relative change in CPI between periods, usually reported on a year-on-year basis (annual inflation) and a month-on-month basis (monthly inflation).
According to the NBS, the “All-item Index (Headline Inflation rate) in November 2022 on a year-on-year basis, stood at 21.47%. This was 6.07% points higher compared to the rate recorded in November 2021, which was (15.40%)”.
This shows that the headline inflation rate increased in November 2022 when compared to the same month in the preceding year (i.e., November 2021) by 6.07 percent.
“The increase in the general price level in the annual inflation rate (Year-on-Year) can be attributed to an increase in the cost of importation due to the continual currency depreciation and a General increase in the cost of production due to a surge in energy cost”, the NBS explained.
