Again, Nigeria’s inflation soars to 25.8% in August – NBS – Blueprint Newspapers Limited

Nigeria’s headline inflation rate for August 2023, rose to 25.80 per cent, marking a 1.72 point higher than the 24.08 per cent recorded in July.

This was indicated in the Consumer Price Index (CPI) report for August 2023 recently released by the National Bureau of Statistics (NBS).

The significant increase reflected the impact of the removal of petrol subsidies, and the devaluation of the official exchange rate on consumer prices.

Month-on-month inflation rose to 3.18 per cent in the review month from 2.89 per cent recorded in the previous month.

In terms of contribution to the year-on-year inflation, food and non-alcoholic beverages contributed the most, which stood at 13.36 percent, followed by housing water, electricity, gas and other fuel 4.32 per cent, and clothing and footwear 1.97 per cent.

On a year-on-year basis in August 2023, the urban inflation rate was 27.69 per cent, which is 6.73 per cent points higher compared to the 20.95 per cent recorded in August 2022.

The rural inflation rate stood at 24.10 per cent, representing a 3.98 per cent points increase compared to the 20.12 per cent recorded in August 2022.

The food inflation rate jumped to 29.34 per cent in August 2023, representing a 2.35 per cent point increase from 26.98 per cent recorded in the previous month and 6.22 per cent points higher than 23.12 per cent recorded in the corresponding period of 2022.

The report said: “On a month-on-month basis, the Food inflation rate in August 2023 was 3.87 per cent, this was 0.41 percent points higher compared to the rate recorded in July 2023 3.45 per cent.

“The average annual rate of Food inflation for the twelve months ending August 2023 over the previous twelve-month average was 25.01 per cent, which was a 5.99 per cent points increase from the average annual rate of change recorded in August 2022 19.02 percent.

“The rise in Food inflation on a year-on-year basis was caused by increases in prices of Oil and fat, Bread and cereals, Fish, Fruit, Meat, Vegetables and Potatoes, Yam and other Tubers, Vegetable, Milk, Cheese and Eggs.

“The ‘All items less farm produce’, which excludes the prices of volatile agricultural produce stood at 21.15 per cent in August 2023 on a year-on-year basis; up by 0.67 per cent when compared to the 20.47 per cent recorded in July 2023.

“On a month-on-month basis, the Core Inflation rate was 2.18 per cent in August 2023. It stood at 2.11% in July 2023, up by 0.07 per cent.

“The average 12-month annual inflation rate was 19.18 per cent for the twelve months ending August 2023; this was 4.38 per cent points higher than the 14.80 per cent recorded in August 2022.

“The highest increases were recorded in prices of Passenger Transport by Air, Passenger Transport by Road, Medical Services, Vehicle Spare parts, Maintenance, and repair of personal transport equipment etc,” report said.

The CPI also disclosed that in the month of August 2023, all-items inflation rate on a year-on-year basis was highest in Kogi 31.50 per cent; Lagos 29.17 per cent; and Rivers 29.06 per cent, while Sokoto 20.91 per cent; Borno 21.77 per cent; and Nasarawa 22.25 per cent, recorded the slowest rise in headline inflation on a year-on-year basis.