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

December 1, 2022

On November 30, 2022, the Federal Government absolved itself of total blame concerning poverty in Nigeria. The Minister of State for Budget and National Planning, Clement Agba, shifted some of the blame to governors of the 36 states. The minister said the governors should stop spending borrowed money on unnecessary projects and spend on projects […]

Recommended Quizzes

December 3, 2019

Are you a professional Yoruba demon? Are you walking around in search of whose life you can wreck at any given time? Well, this quiz knows exactly how many hearts you’ve shattered to date, and before you lie that your result is inaccurate, just remember that Zikoko is never wrong. Now, take it and be […]

November 20, 2019

Last month, we thoughtfully made a quiz telling you guys exactly when you’ll marry, but some of you claimed that your spouse was nowhere to be found. Well, now we’ve created one that’ll tell you exactly who you’ll be dragging down that aisle. Take and start planning that wedding: 11 Quizzes For Nigerians Who Are […]

how tall are you
March 11, 2020

Did your parents give you enough beans when you were growing up? If they did, then you’re probably around 6’0″ and above. Either way, we created a quiz that can guess your current height (pretty accurately, if we do say so ourselves). Take to see if we nailed it:

November 14, 2019

The fourth season of Big Brother Naija came to an end over a month ago, but the conversation surrounding the housemates is far from over. So, in a bid to keep the fire burning, we decided to create a quiz that tells you which famous member of the ‘Pepper Dem’ gang is your soulmate. Take […]

how much of an ajebutter
February 12, 2020

Are you an ajebutter or not? Well, if you’ve gone through life blissfully unaware of its harshness, then you probably are. Now, we want to know just how high you rank on that ajebutter scale, using your food preferences as a (very accurate) measure. Take to find out:

More from Money

November 22, 2022

Among the things Douglas* wished for on his 24th birthday, finding love was not one of them. When he met Susie* in 2021, everything seemed right, even though she’s an unemployed student. But she agreed to date him if he promised not to treat her as his dependant.

Watch

Trending Videos

Zikoko Originals

September 13, 2022
Vs The World is a Zikoko original video series that follows best friends Astor and Hassan as they take on the world.
August 23, 2022
Zikoko Ships is a Zikoko Original series where we invite two people who share a relationship to play the Zikoko card games
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.

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