Nigeria’s inflation rate increases to 20.52% in August

The National Bureau of Statistics (NBS) says Nigeria’s headline inflation rate increased to 20.52 per cent on a year-on-year basis in August.

This is according to the NBS Consumer Price Index (CPI), and Inflation Report for August released in Abuja on Thursday.

The report says the figure is 3.52 per cent points higher compared to 17.01 per cent recorded in August 2021.

“This shows that the headline inflation rate increased in August 2022 when compared to the same month in the previous year.

“Meaning that in August 2022, the general price level was 3.52 per cent higher relative to August 2021,” the NBS stated.

According to the report, factors responsible for the increase in annual inflation rate include disruption in the supply of food products.

It said other factors were increase in import cost due to the persistent currency depreciation and a general increase in the cost of production.

The report said on a month-on-month basis, the Headline inflation rate in August was 1.77 per cent, which was 0.05 per cent lower than the rate recorded in July at 1.82 per cent.

“This means that in August 2022 the headline inflation rate on a month–on–month basis declined by 0.05 per cent,” said the report.

According to the report, the factor responsible for the decline in the monthly inflation rate is a decline in the current month’s food index relative to the reference month index, which is due to the harvest season.

It said another factor was the relative stability in transportation cost due to the availability of fuel.

The report said the percentage change in the average CPI for the 12 months, ending August, over the average of the CPI for the previous twelve months period was 17.07 per cent.

“This is showing a 0.47 per cent increase compared to 16.60 per cent recorded in August 2021,” the report noted.

It said increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.

The report said on a year-on-year basis, in August, the urban inflation rate was 20.95 per cent, which was 3.36 per cent higher compared to the 17.59 per cent recorded in August 2021.

While on a month-on-month basis, the urban inflation rate was 1.79 per cent in August, this was a 0.03 per cent decline compared to July at 1.82 per cent.

The report showed the rural inflation rate in August was 20.12 per cent on a year-on-year basis; this was 3.69 per cent higher compared to 16.43 per cent recorded in August 2021.

“While on a month-on-month basis, the rural inflation rate in August was 1.75 per cent down by 0.06 per cent compared to July 1.81 per cent,” continued the report.

It added that said the food inflation rate in August was 23.12 per cent on a year-on-year basis, which was 2.82 per cent higher compared to the rate recorded in August 2021 at 20.30 per cent.

“This rise in the food inflation was caused by increases in prices of bread and cereals, potatoes, yams and other tubers, fish, meat, oil and fat,” it said.

While on a month-on-month basis, the food inflation rate in August was 1.98 per cent, this was a 0.07 per cent decline compared to the rate recorded in July at 2.04 per cent.

According to the report, this decline is attributed to a reduction in prices of some food items like tubers, garri, local rice and vegetables.

The report stated that average annual rate of food inflation for the 12-month period ending August over the previous 12-month period was 19.02 per cent, a 1.48 per cent decline from the average annual rate of change recorded in August 2021 at 20.50 per cent.

The report said in August, all items inflation rate on a year-on-year basis was highest in Ebonyi with 25.33 per cent, followed by Rivers with 23.70 per cent and Bayelsa with 23.01 per cent.

“While the states with the slowest rise were Jigawa with 17.30 per cent, followed by Borno with 17.56 per cent and Zamfara with 18.04 per cent,” said the report.

It said on a month-on-month basis, August recorded the highest increase in Anambra with 2.78 per cent, followed by Ondo with 2.53 per cent and Nasarawa with 2.40 per cent.

It observed that the slowest rise was recorded in Yobe with 0.68 per cent followed by Borno with 0.84 per cent and Zamfara with 0.98 per cent.

The report said in August, food inflation on a year-on-year basis was highest in Kwara at 30.80 per cent followed by Ebonyi at 28.06 pe ent and Rivers at 27.64 per cent.

It added that the slowest rise was recorded in Jigawa at 17.77per cent, followed by Zamfara at 18.79 per cent and Oyo at 19.80 per cent.

However, it said on a month-on-month basis, August food inflation was highest in Anambra with 3.05 per cent, followed by Ondo with 2.92 per cent and Bauchi with 2.78 per cent.

The report said the slowest rise was recorded in Yobe with 0.46 per cent, followed by Oyo with 0.89 per cent and Delta with 0.94 per cent.