Nigeria’s inflation rate rose as headline inflation increased from 15.6 in January 2022 to 15.7% in February 2022. Having dropped from 15.63% in December 2021 to 15.6% in January 2022, the inflation rate picked up in February.
Core inflation also rose to 14.01, having stayed at the same rate of 13.87 in December 2021 and January 2022.
Food inflation however continues to decline for a third consecutive month as it dropped from 17.13% in January 2022 to 17.11% in February 2022.
Inflation rates are determined by changes in the basket of goods and services. These price baskets are referred to as Composite Price Indexes (CPI). The movement in the CPI determines the final rate of inflation at any given period.
A review of the CPI price base shows an increase in all baskets of goods and services measured in the country in February 2022.
However, changes in the price basket for food, clothes transport, and housing top the changes recorded in February 2022.
The CPI of food baskets increased from 484.7 in January to 493.8 in February. This represents a 1.88% price increase on a month-on-month basis. It, however, increased by 17.13% on a year-on-year basis as CPI changed from 421.6 in February 2021 to 493.8 in February 2022.
Clothing items increased on a month-on-month basis by 1.43% while transport and housing, water and electricity increased by 1.31% and 1.22%, respectively.
The monthly movement of the inflation rate in the health sector shows a three-month increase from December 2021 to February 2022. In the final phase, inflation in the health sector increased from 1.23 in January 2022 to 1.25 in February 2022,
The housing, water, and electricity sector had a four-month steady inflation increase from September 2021 to December 2021. It dropped to 1.21% in January, then increased to 1.22% in February.
The inflation rate in the education sector had a three-month increase from November 2021 to February 2022. Communication and transport sectors saw a four-month steady increase.