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Inflation hits record high of 29.90% on naira weakness

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Inflation
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Nigeria’s annual inflation rate reached 29.90 percent in January, the country’s statistics agency reported today as the naira continues to weaken.

The Consumer Price Index report released by the NBS showed that prices rose by 0.98 percent to 29.90percent in January 2024, compared with 28.92 percent in December.

“On a year-on-year basis, the headline inflation rate was 8.08 percent higher compared to the rate recorded in January 2023, which was 21.82 percent,” the report said.

This exceeds the Financial Derivatives Company projections that the headline inflation is likely to spike further to 29.73 percent.

it will be the thirteenth consecutive monthly increase and a record high

“The foremost inflation culprit in Nigeria today is the weakened currency. In January alone, the naira lost 21 percent, touching a record low of N1,530/$. This is largely because of the lingering disequilibrium in the forex market as dollar demand continues to outpace supply.,” the report said.

The FDC report mentioned that the persistent currency depreciation has led to increased costs of imported goods such as wheat, subsequently pushing up the prices of wheat-related products like noodles, semovita, and bread by 20.4 percent, 35.8 percent and 14.3 percent

, respectively.

They also revealed that food inflation, which constitutes 50 percent of the inflation rate, rose to 35.41 percent in January from 33.93 percent in December.

The rise in the Food inflation on a Month-on-Month basis was caused by a rise in the rate of increase in the average prices of Potatoes, Yam & Other Tubers, Bread and Cereals, Fish, Meat, To- bacco, and Vegetable.

A breakdown of the NBS’ latest consumer price index report shows that food and non-alcoholic beverages contributed the most (15.49 percent) to the increase in the headline index, followed by housing water, electricity, gas, and other fuel (5.00 percent), clothing and footwear (2.29 percent), transport (1.95 percent), furnishings and household equipment and maintenance (1.50 percent) and education (1.18 percent).

Others are health (0.90 percent), miscellaneous goods and services (0.50 percent), restaurants and hotels (0.36 percent), alcoholic beverages, tobacco and kola (0.33 percent), recreation and culture (0.21), and communication (0.20 percent).

Furthermore, On a year-on-year basis, in January 2024, the Urban inflation rate was 31.95 percent, this was 9.40 percent points higher compared to the 22.55 percent recorded in January 2023.

While the Rural inflation rate in January 2024 was 28.10 percent on a year-on-year basis; this was 6.97 percent higher compared to the 21.13 percent recorded in January 2023. On a month-on-month basis, the Rural inflation rate in January 2024 was 2.57 percent , up by 0.40 percent compared to December 2023.

Core inflation, which excludes the prices of volatile agricultural produces and energy stood Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 23.59 percent in January 2024 on a year-on- year, up by 4.71 percent from 18.88 percent recorded in January 2023.

The highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Passenger Transport by Air, Actual and Imputed Rentals for Housing, Pharmaceutical products, Accommodation services, etc.

Except for a brief pause in Dec 2022, Nigeria’s inflation reading has steadily increased since January 2023, a twelve -month consecutive high.

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BREAKING NEWS: Apapa Port Command of the Nigeria Customs Service has announced a revenue collection of N1.6 trillion from January to September 2024.

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October 8, 2024

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The Apapa Port Command of the Nigeria Customs Service has announced a remarkable revenue collection of N1.6 trillion from January to September 2024. This achievement showcases the Command’s commitment to excellence and its significant contribution to the country’s economy.

Ekwutosblog reports, according to Comptroller Babatunde Olomu, the Customs Area Controller, the Command collected N1.227 trillion between January and July 2024, with July being its highest monthly collection of N201.8 billion.

This revenue surpasses the total revenue collected in 2023.

The Command’s success can be attributed to its effective implementation of the Comptroller General of Customs’ thrust of time release study to facilitate trade without delay.

Additionally, the interventions from the Tariff and Trade Department have contributed immensely to the successes achieved.

This impressive revenue collection is a testament to the Apapa Command’s dedication to promoting legitimate trade and preventing revenue leakage.

The Command remains committed to doing more in line with the directives of the Comptroller General of Customs.

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BREAKING: NNPCL steps aside as middleman for Dangote Refinery Petrol

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2 days ago

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October 7, 2024

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NNPCL steps aside as middleman for Dangote Refinery Petrol

Marketers can now buy directly from DR at open market price.

Meaning Nigerians should brace up.

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Pakistan seals off capital, blocks cellphones ahead of protest by Imran Khan’s party

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5 days ago

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October 4, 2024

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By Asif Shahzad

ISLAMABAD (Reuters) – Authorities in Pakistan sealed off the capital, Islamabad, and blocked cellphone services on Friday to prevent an anti-government rally by supporters of jailed former Prime Minister Imran Khan, officials said.

It would be the latest in a series of protest rallies since last month to press for Khan’s release and agitate against the ruling coalition government, which the party calls illegitimate, saying it was formed after a fraudulent election.

Shipping containers have been placed to block Islamabad’s entry and exit points, guarded by large numbers of police and paramilitary troops, the officials said, while police banned any gathering in the capital.

“If someone plans to storm Islamabad, we wouldn’t let that happen,” Interior Minister Mohsin Naqvi told a news conference late on Thursday.

He urged Khan’s party to shift the rally to later dates, to avoid disrupting Islamabad’s preparations to host a meeting of the Shanghai Co-operation Organisation (SCO) on Oct. 15 and Oct. 16.

Malaysian Prime Minister Anwar Ibrahim is visiting, to be followed by a high-profile Saudi delegation and Chinese Premier Li Qiang ahead of the conference, Naqvi said, adding, “We can’t allow any chaos.”

Any agitation in the capital would not send a good signal to the world ahead of the conference, Naqvi said.

Disregarding the appeal, Khan asked his supporters to gather outside parliament regardless of obstacles.

“I want you all to reach D-Chowk today for a peaceful protest rally,” he posted on X on Friday, referring to a spot outside parliament. “This war has entered a decisive phase.”

Even though Khan has been in jail since Aug 2023, candidates backed by him won the most seats in February’s general election, though their numbers were insufficient to form a government.

His opponents, led by Prime Minister Shehbaz Sharif, formed a coalition government instead.

In a statement on Friday, Islamabad police warned they would take action against anyone attempting to disturb the peace in the capital, adding that any gathering had been banned.

Schools were shut and cellphone services suspended in Islamabad and the adjacent garrison city of Rawalpindi.

A telecoms official said cellphone services were blocked on directions from the interior ministry. A ministry spokesman did not respond to a request for a comment.

(Reporting by Asif Shahzad; Editing by Clarence Fernandez)

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