Nigeria’s Inflation Rate Has Hit A New High. Here’s What That Could Mean For Everyone

January 18, 2019

Is it just me or does it feel like Nigeria has been caught in a loop of “bracing for tough times” for like 3 decades now?

 

Remember when Isaac Newton said that whatever goes up must come down? Well, Isaac never encountered prices in Nigeria’s economy. The seemingly never-ending rise in prices of well…everything is due to the increases in Nigeria’s inflation rate, which has gone up once again.

 

From 11.28% in November 2018 to 11.44% in December 2018.

 

You guys, this is terrible news, but please try not to freak out. Here’s a gif of an enchanted waterfall to relax your nerves.

The National Bureau of Statistics (NBS) revealed this in its CPI and Inflation Report for December 2018, released on the 16th of January 2019. The report stated that with a 0.16% increase from the last recorded figure in November 2018, this is the highest inflation figure since June 2018.

You see, inflation in Nigeria is measured using the changes in the Consumer Price Index (CPI) observed over a period of time. The CPI measures the change in the prices of certain goods and services consumed by households on a daily basis. These changes are monitored in urban and rural areas (urban and rural inflation rate) in all 36 states in the country.

 

The goods and services that are monitored are split into different categories and ranked in order of importance. Here’s a list:

– Food and non-alcoholic beverages – Housing, water, electricity, gas, and other fuels – Clothing and footwear – Transport – Furnishings and household equipment maintenance – Education – Health – Miscellaneous goods and services – Restaurants and hotels – Alcoholic beverages, tobacco, and narcotics – Communications – Recreation and culture

 

According to experts, price increases in all these categories (a major contributor to the inflation rate) can be attributed to the spending habits of consumers during the 2018 festive period.

Kinda.

 

On a year-on-year basis, urban inflation rate increased to 11.73%  in December 2018 from 11.61% recorded in November of the same year, while rural inflation rate increased to 11.18% in December 2018 from 10.99% in November 2018.

 

On a month-on-month basis, the report said urban inflation rate by 0.76% in December, down by 0.07% from 0.83% in November, while the rural inflation rate also rose by 0.72%  in December, down by 0.06% per cent from the rate recorded in November, which was 0.78%.

What does this mean for us? Well, in a nutshell:

And to make things worse, it’s most likely going to last for a big chunk of 2019 due to the following reasons:

 

–  Spending by political hopefuls during the elections. – High levels of insecurity in food-producing states. – Expectations of a higher minimum wage.  – Movement of the Naira through the foreign exchange market. – A possible hike in electricity tariffs.

 

On top of all that,  the World Bank hinted a while back that there might be a possible increase in food prices in 2019 due to terrible weather conditions.

WHO DID WE OFFEND?!

Join The Conversation

Bring a friend.

You'll like this

Watch

Now on Zikoko

January 18, 2022

Apart from not being able to find shoes their size, tall Nigerian women often deal with comments like “you are too tall for that dress” or questions like “will you marry a short man?” In this article, Chigozie talks about how to be a tall girl in Nigeria. 
Read here:

Recommended Quizzes

November 11, 2019

Everyone has something to say about what kind of person they are. But how well do we truthfully evaluate these things? Not that much, I can assure you. The average person is always lying to themselves to make sure they look good. But you know what and who doesn’t lie? Zikoko quizzes that’s what. Take […]

December 11, 2019

In the past month, we’ve made quizzes that guessed the last time you had sex, how many people you’ve slept with, and just how good you are in bed. For our latest attempt, we will use your taste in Nigerian music from the 2010s to ascertain what you’re like in bed. Take to find out:

December 5, 2019

We already tried to guess how much you have in your account and your current net worth, and we think we did a pretty great job (keep any complaints to yourself). Now, we’re going to try and guess your monthly salary based on your relationship with money. Oya, take the quiz: 11 Timed Quizzes For […]

More from Money

January 3, 2022

To kick off 2021, we compiled a list of #NairaLife stories you should consider reading twice. From the politician who lives on donations to the investment analyst who quadrupled her income in two years, these are 10 must-read stories from the series.

Watch

Trending Videos

Zikoko Originals

December 14, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
November 2, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
October 26, 2020
A collection of videos documenting some of the events of the EndSARS protests.
June 22, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
June 22, 2020
Hacked is an interesting new series by Zikoko made up of fictional but hilarious chat conversations.
June 4, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
June 2, 2020
Quickie is a video series where everyone featured gets only one minute to rant, review or do absolutely anything.
May 14, 2020
Isolation Diary is a Zikoko series that showcases what isolation is like for one young Nigerian working from home due to the Coronavirus pandemic.
March 12, 2020
Life is already hard. Deciding where to eat and get the best lifestyle experiences, isn't something you should stress about. Let VRSUS do that for you.

Z! Stacks

Here's a rabbit hole of stories to lose yourself in:

Zikoko amplifies African youth culture by curating and creating smart and joyful content for young Africans and the world.
X