July 21, 2024

High energy prices escalate Nigeria’s core inflation rate to 19.16% for Jan. 2023, highest since in 5yrs – Report

Oredola Adeola


Rising prices of gas, liquid fuel, and lubricants for personal transport, solid fuel, and others have been identified as factors responsible for Nigeria’s persistent core inflation which stood at 19.16 percent, on a year-on-year basis, in January 2023 (the highest in since 2017), up by 5.29% when compared to the 13.87% recorded in January 2022.


This was contained in the National Bureau of Statistics (NBS) Consumer Price Index (CPI) and inflation report for January 2023, obtained by EnergyDay on Wednesday.


EnergyDay gathered that core inflation in Nigeria refers to the rate of increase in prices of goods and services, excluding volatile food inflation rate. It usually plays significantly impact the overall inflation rate and CPI.

A very sharp rise of core inflation, unlike headline inflation rate, is often considered as a broader view of real time purchasing power of the citizen which is being eroded in the economy.


According to the report, on a month-on-month basis, the core inflation also known as the ‘’All items less farm produce’’ rate was 1.82% in January 2023, up by 0.49% points from the 1.33% recorded in December 2022. It accelerated to 19.16% for the tenth straight month to a near 16-year high.


The Core inflation rate of 19.16% is much lower than the 21.82% headline inflation rate over the same period. This however significant represent the increase in the cost of living in Nigeria.


On a month-to-month basis average Diesel price rose to ₦817.86, the petrol price was ₦350, electricity tariff was N60.67/kWh (depending on their billing category) as of January 2023.


Experts have charged the government to initiate effective policies including the introduction of palliatives and other critical measures that can address the underlying factors driving inflation in the country.


Dr. Muda Yusuf, Director, Centre for the Promotion of Private Enterprise (CPPE), in a recent statement obtained by EnergyDay charged the Central Bank of Nigeria (CBN) to avoid further monetary policy tightening, adding that the monetary policy outcomes have been inconsequential as a tool to tame inflation.


The former Director General of the Lagos Chamber of Commerce and Industry (LCCI) noted that inflation had been spiking despite the serial monetary tightening.