…Inflation drops to 21.34%, 0.13% decline
…Decline marginal, not worth celebrating, departure from reality – Experts
By Ariemu Ogaga, Philemon Adedeji
Nigeria’s inflation rate declined to 21.34 per cent for December, 2022, the National Bureau of Statistics (NBS) disclosed on Monday in its Consumer Price Index (CPI) monthly report.
The 0.13 per cent decline was the first in 11 months.
The country’s inflation rate had risen for 10 consecutive months, up to November 2022, when it pitched at 21.47 per cent.
The NBS in its latest report on Monday said the country’s inflation rate showed a decline of 0.13% between November and December.
The report read: “In December 2022, the headline inflation rate eased to 21.34 per cent compared to November 2022 headline inflation rate which was 21.47 per cent.
“Looking at the trend, December 2022 inflation rate showed a decline of 0.13 per cent when compared to November 2022 inflation rate.
“However, on a year-on-year basis, the headline inflation rate was 5.72 per cent points higher compared to the rate recorded in December 2021, which was (15.63 per cent). This shows that the headline inflation rate increased in the month of December 2022 when compared to the same month in the preceding year (i.e., December 2021).
“On a month-on-month basis, the percentage change in the All Items Index in December 2022 was 1.71 per cent, which was 0.32 per cent higher than the rate record per cent). This means that in the month of December 2022, the general price level was 0.32 per cent higher relative to November 2022.
“The percentage change in the average Consumer Price Index for the 12 months ending December 2022 over the average of the CPI for the previous 12 months period was 18.85 per cent, showing 1.89 per cent increase compared to the 16.95 per cent recorded in December 2021.”
Meanwhile, experts have described the decline as a marginal reflection not worth celebrating, lamenting that the impacts on the local economy and the masses are inconsequential.
Speaking to Nigerian NewsDirect, an Accounting and Financial Development don at Lead City University, Ibadan, Prof Godwin Oyedokun said the 0.13 per cent decline in Nigeria’s December inflation is not worth celebrating.
According to him, “The percentage decline in the recent inflation figure is not worth celebrating, but it is okay. It is a right step forward.
“At times inflation may have such behavior because of the end of year hike in demand. We hope to see more decline this January because everybody is getting wiser on what to buy and not to buy. We pray this decline is sustained going forward.”
The Vice President of Highcap Securities Limited, David Andori, commenting on the development said that the decline in inflation rate is a good news but maintained “the decline is insignificant.”
“Secondly, the figure is divergent from reality on ground considering the rising prices of energy and foodstuffs. A litre of Petrol is selling for N600 now,” he lamented.