New data from the National Bureau of Statistics reveals that Nigeria’s headline inflation rate surged to 29.90% in January 2024, marking a significant increase from 28.92% in December 2023. This represents the highest level since mid-1996, indicating growing economic challenges for the country.
The report further details that the urban inflation rate, on a year-on-year basis in January 2024, reached 31.95%, reflecting a substantial 9.40 percentage points rise from 22.55% in January 2023.
Examining month-on-month figures, the urban inflation rate for January 2024 reached 2.72%, showing a 0.30 percentage points increase compared to December 2023. The twelve-month average for the urban inflation rate in January 2024 stood at 27.01%, a notable rise from 19.91% reported in January 2023, indicating a 7.10 percentage points increase.
In response to the soaring inflation, Nigeria’s central bank governor aims to curb the rate to around 21%. To achieve this, there are expectations of a significant interest rate hike of approximately 400 basis points, bringing it to 22.75%. The Monetary Policy Committee is anticipated to implement these measures later this month, as reported by Reuters.
