The National Bureau of Statistics (NBS) in its recently released Consumer Price Index (CPI) report for August 2023 said Nigeria’s inflation rate rose to 25.80 per cent in August 2023, showing 1.72 per cent points higher than the 24.08 per cent recorded in the previous month of July.
NBC explained that the significant increase reflects the impact of the removal of petrol subsidies and the unification of the foreign exchange FX market rate on consumer prices.
According to the NBS, Month-on-month inflation rose to 3.18 per cent in August 2023, from 2.89 per cent recorded in the previous month.
It pointed out that food and non-alcoholic beverages contributed the most,
13.36 per cent followed by housing water, electricity, gas and other fuel, 4.32 per cent, and clothing and footwear 1.97 per cent to the year-on-year inflation.
The NBS added that the Urban inflation rate on a year-on-year basis in August 2023 was 27.69 per cent, indicating 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 point increase compared to the 20.12 per recorded in August 2022.
The NBS stated that the Food inflation rate jumped to 29.34 per cent in August 2023, showing 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.
However, on a month-on-month basis, the food inflation rate in August 2023 was 3.87 per cent, indicating 0.41 per cent points higher compared to 3.45 per cent recorded in July 2023.
The average annual rate of Food inflation for the 12 months ending August 2023 over the previous 12 months’ average was 25.01 per cent, which was a 5.99 per cent points increase from the 19.02 per cent average annual rate of change recorded in August 2022.
The NBS attributed the rise in Food inflation on a year-on-year basis to increases in prices of Oil and fat, Bread and cereals, Fish, Fruit, Meat, Vegetables and Potatoes, Yam and other Tubers, Vegetables, 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 NBS said the Core Inflation rate was 2.18 per cent in August 2023, while it stood at 2.11 per cent in July 2023, up by 0.07 per cent.
The average 12-month annual inflation rate was 19.18 per cent for the 12 months ending August 2023, representing 4.38 per cent points higher than the 14.80 per cent recorded in August 2022.
The NBS stressed that 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.
It highlighted that in August 2023, all items inflation rate on a year-on-year basis was highest in Kogi at 31.50 per cent; Lagos, 29.17 per cent, and Rivers, 29.06 per cent, while Sokoto recorded 20.91 per cent; Borno, 21.77 per cent and Nasarawa had 22.25 per cent, showing the slowest rise in headline inflation on a year-on-year basis.
On a year-on-year basis, food inflation was highest in Kogi at 38.84 per cent; Lagos recorded 36.04 per cent, and Kwara had 35.33 per cent, while Sokoto witnessed a 20.09 per cent rise, Nasarawa recorded 24.35 per cent and Jigawa had 24.53 per cent, representing the slowest rise in Food inflation on a year-on-year basis.