All Items Index

In February 2023, the headline inflation rate rose to 21.91% compared to January 2023 headline inflation rate which was 21.82%. Looking at the trend, the February 2023 inflation rate showed an increase of 0.09% points when compared to January 2023 headline inflation rate. 

Similarly, on a year-on-year basis, the headline inflation rate was 6.21% points higher compared to the rate recorded in February 2022, which was 15.70%. This shows that the headline inflation rate (year-on-year basis) increased in February 2023 when compared to the same month in the preceding year (i.e., February 2022). 

The contributions of items on a class basis to the increase in the headline index are presented, thus: Bread and Cereal (21.67%), Actual and Imputed Rent (7.74%), Potatoes, Yam and Other Tubers (6.06%), Vegetable (5.44%) and Meat (4.78%). 

On a month-on-month basis, the percentage change in the All-Items Index in February 2023 was 1.71%, which was 0.16% points lower than the rate recorded in January 2023 (1.87%). This means that in February 2023, on average, the general price level was 0.16% lower relative to January 2023. 

The percentage change in the average CPI for the twelve months period ending February 2023 over the average of the CPI for the previous twelve months period was 19.87%, showing a 3.15% points increase compared to 16.73% recorded in February 2022. 

The increases were recorded in all COICOP divisions that yielded the headline index.

Urban Inflation

On a year-on-year basis, the urban inflation rate in February 2023 was 22.78%, this was 6.53% points higher compared to the 16.25% recorded in February 2022. On a month-on-month basis, the urban inflation rate was 1.85% in February 2023, this was 0.13% points lower compared to January 2023 (1.98%). The corresponding twelve-months average for the urban inflation rate was 20.45% in February 2023. This was 3.16% points higher compared to the 17.29% reported in February 2022. 

Rural Inflation 

The rural inflation rate in February 2023 was 21.10% on a year-on-year basis; this was 5.92% points higher compared to the 15.18% recorded in February 2022. On a month-on-month basis, the rural inflation rate in February 2023 was 1.58%, down by 0.19% points compared to January 2023 (1.77%). The corresponding twelve-months average for the rural inflation rate in February 2023 was 19.33%. This was 3.15% points higher compared to the 16.18% recorded in February 2022.

Food Index

The food inflation rate in February 2023 was 24.35% on a year-on-year basis; which was 7.24% points higher compared to the rate recorded in February 2022 (17.11%). The rise in food inflation was caused by increases in prices of Oil and Fat, Bread and Cereals, Potatoes, Yam and Other Tubers, Fish, Fruits, Meat, Vegetable, and Food Product n.e.c. On a month-on-month basis, the food inflation rate in February 2023 was 1.90%, which was 0.18% points lower compared to the rate recorded in January 2023 (2.08%). The average annual rate of food inflation for the twelve-months ending February 2023 over the previous twelve-months average was 22.12%, which was a 2.44% points increase from the average annual rate of change recorded in February 2022 (19.69%).

All Items Less Farm Produce

The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 18.84% in February 2023 on a year-on-year basis; up by 4.83% when compared to the 14.01% recorded in February 2022. The highest increases were recorded in prices of Gas, Passenger Transport by Air, Liquid Fuel, Fuels, and Lubricants for Personal Transport Equipment, Vehicles Spare Parts, Solid Fuel, etc. On a month-on-month basis, the core inflation rate was 1.06% in February 2023. It stood at 1.82% in January 2023, down by 0.76% points. The average twelve-months annual inflation rate was 16.92% for the twelve-months ending February 2023; this was 3.46% points higher than the 13.46% recorded in February 2022.

State Profile

In analysing price movements under this section, it should be noted that CPI is weighted by consumption expenditure patterns which differ across States and locations. Accordingly, the weight assigned to a particular food or non-food item may differ from State to State making interstate comparisons of consumption baskets inadvisable and potentially misleading. 

All Items Inflation 

In February 2023, All items inflation rate on a year-on-year basis was highest in Bauchi (24.59%), Rivers (24.40%), and Ondo (24.27%), while Sokoto (18.90%), Borno (18.94%) and Cross River (19.62%) recorded the slowest rise in headline year-on-year inflation. On a month-on-month basis, however, February 2023 recorded the highest increases in Edo (2.76%), Ogun (2.64%), and Yobe (2.36%), while Bayelsa (0.74%), Borno (0.95%) and Taraba (1.03%) recorded the slowest rise on month-on-month inflation. 

Food Inflation 

In February 2023, food inflation on a year-on-year basis was highest in Kwara (29.51%), Imo (27.47%), and Lagos (27.42%), while Sokoto (18.54%), Jigawa (19.67%) and Yobe (21.89%) recorded the slowest rise on year-on-year food inflation. On a month-on-month basis, however, February 2023 food inflation was highest in Yobe (3.15%), Edo (3.03%), and Ogun (2.90%), while Rivers (0.75%), Sokoto (0.89%) and Nassarawa (0.90%) recorded the slowest rise on month-on-month inflation.

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