Nigeria’s inflation rate jumped to 25.80 percent in August 2023, showing 1.72 percent points higher than the 24.08 percent recorded in the previous month of July.
The National Bureau of Statistics (NBS) that stated this in its recently released Consumer Price Index (CPI) report for August 2023 explained that the significant increase reflects the impact of the removal of petrol subsidies and the unification of the foreign exchange FX markets rate on consumer prices.
According to the NBS, Month-on-month inflation rose to 3.18 percent in August 2023, from 2.89 percent recorded in the previous month.
It pointed out that food and non-alcoholic beverages contributed the most,
13.36 percent followed by housing water, electricity, gas and other fuel, 4.32 percent, and clothing and footwear 1.97 percent 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 percent, indicating 6.73 percent points higher compared to the 20.95 percent recorded in August 2022.
The Rural inflation rate stood at 24.10 percent, representing a 3.98 percent points increase compared to the 20.12 pee recorded in August 2022.
The NBS stated that Food inflation rate jumped to 29.34 percent in August 2023, showing a 2.35 percent point increase from 26.98 percent recorded in the previous month and 6.22 percent points higher than 23.12 percent recorded in the corresponding period of 2022.
However, on a month-on-month basis, the food inflation rate in August 2023 was 3.87 percent, indicating 0.41 percent points higher compared to 3.45 percent 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 percent, which was a 5.99 percent points increase from the 19.02 percent 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, Vegetable, Milk, Cheese and Eggs.
The “All items less farm produce”, which excludes the prices of volatile agricultural produce stood at 21.15 percent in August 2023 on a year-on-year basis; up by 0.67 percent when compared to the 20.47 percent recorded in July 2023.
On a month-on-month basis, the NBS said the Core Inflation rate was 2.18 percent in August 2023, while stood at 2.11 percent in July 2023, up by 0.07 percent.
The average 12-month annual inflation rate was 19.18 percent for the 12 months ending August 2023, representing 4.38 percent points higher than the 14.80 percent 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 with 31.50 percent; Lagos, 29.17 percent, and Rivers, 29.06 percent, while Sokoto recorded 20.91 percent; Borno, 21.77 percent and Nasarawa had 22.25 percent, 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 with 38.84 percent; Lagos recorded 36.04 percent, and Kwara had 35.33 percent, while Sokoto witnessed 20.09 percent rise, Nasarawa recorded 24.35 percent and Jigawa had 24.53 percent, representing the slowest rise in Food inflation on a year-on-year basis.
