Again, Nigeria’s inflation soars to 25.80 percent in August, NBS reveals

Nigeria’s headline inflation rate for August 2023, rose to 25.80 percent, marking a 1.72 points higher than the 24.08 percent recorded in the previous month, July.

This is according to the recently released Consumer Price Index (CPI) report for August 2023 by the National Bureau of Statistics (NBS).

The significant increase reflects 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 percent in the review month from 2.89 percent 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 percent, and clothing and footwear 1.97 percent.

On a year-on-year basis in August 2023, the urban inflation rate was 27.69 percent, which is 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 percent recorded in August 2022.

The food inflation rate jumped to 29.34 percent in August 2023, representing 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.

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

“The average annual rate of Food inflation for the twelve months ending August 2023 over the previous twelve-month average was 25.01 percent, which was a 5.99 percent 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 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 Core Inflation rate was 2.18 percent in August 2023. It stood at 2.11% in July 2023, up by 0.07 percent.

“The average twelve-month annual inflation rate was 19.18 percent for the twelve months ending August 2023; this was 4.38 percent points higher than the 14.80 percent 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.”

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 percent; Lagos 29.17 percent; and Rivers 29.06 percent, while Sokoto 20.91 percent; Borno 21.77 percent; and Nasarawa 22.25 percent, recorded the slowest rise in headline inflation on a year-on-year basis.