On Wednesday, the National Bureau of Statistics (NBS) released the Consumer Price Index (CPI), which measures inflation. The index hit 21.9% in February 2023, showing an increase of 0.09% points compared to the January 2023 headline inflation rate. On a year-on-year basis, the headline inflation rate was 6.21 percentage points higher than the rate recorded in February 2022, which was 15.70%.
The report highlights that the headline inflation rate (year-on-year basis) increased in February 2023 compared to the same month in the preceding year. The contributions of items on a class basis to the increase in the headline index are presented, with 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%) being the top contributors.
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 NBS report further stated that Food Inflation was 24.35% in February 2023. These figures indicate a significant increase in inflation, which could have a severe impact on the economy. It is essential to monitor these trends closely and take appropriate measures to mitigate their effects.