The National Bureau of Statistics, NBS, has disclosed that the country’s inflation index rose for the 16th consecutive months in December 2020 to 15.75.
The rise was linked to the spike in food prices.
This is the fifth year that inflation rate has exceeded the Central Bank of Nigeria’s target of between six per cent and nine per cent.
This upturns the previous rate recorded in November at 14.89 per cent, which is 0.66 per cent points higher than the rate recorded in October 2020 at 14.23 per cent.
The food inflation rose to 19.56 per cent in December 2020 compared to 18.30 per cent recorded in November 2020.
The rise in the food index was induced by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fruits, vegetable, fish and oils and fats.
The percentage change in the average composite Consumer Price Index for the twelve months period ending December 2020 over the average of the CPI for the previous twelve months period was 13.25 percent, NBS said.
Urban inflation rate increased by 16.33 per cent, while rural index rose to 15.2 per cent.
The Covid- 19 pandemic which resulted in a lockdown in March had disrupted businesses, including manufacturing activities.
Coupled with insurgency which led to the death of hundreds of farmers in 2020 and the lingering border closure, prices jumped to its worst levels in years.
But the government has lifted its 2019 directive to close its land borders to neighbouring countries.