Nigeria’s headline inflation rate increased to 25.80% in August relative to the 24.08% recorded in the preceding month, the National Bureau of Statistics (NBS) has reported.
The statistics agency, in its ‘Consumer Price Index August 2023’ report published on Friday, indicated that that the August 2023 headline inflation rate showed an increase of 1.72% points when compared to the July 2023 headline inflation rate.
The Bureau reported that on a year-on-year basis, the headline inflation rate was 5.27% points higher compared to the 20.52% rate recorded in August last year as the prices of goods and commodities continue to sustain upward swing with food prices serving as the major propelling factor.
Similarly, the NBS clarified that on a month-on-month basis, the headline inflation rate in August 2023 was 3.18% which was 0.29% points higher than the 2.89% rate recorded in July, which means that in August 2023, on average, the general price level was 0.29% higher relative to July 2023.
According to the CPI report, the percentage change in the average CPI for the twelve-month period ending August 2023 over the average of the CPI for the previous twelve-month period was 22.38%, showing a 5.31% increase compared to 17.07% recorded in August 2022.
On Urban Inflation rate, the NBS reported that on a year-on-year basis, in August 2023, the urban inflation rate was 27.69%, representing 6.73% points higher compared to the 20.95% recorded in August 2022.
It added that on a month-on-month basis, the Urban inflation rate was 3.29% in August 2023, this was 0.24% points higher compared to July 2023 (3.05%).
The Bureau also disclosed in the report that the Rural inflation rate in the month under review was 24.10% on a year-on-year basis, indicating 3.98% points higher compared to the 20.12% recorded in August 2022, adding that on a month-on-month basis, the Rural inflation rate in August was 3.08%, up by 0.34% points compared to 2.74% rate recorded in July 2023.
The Bureau reported that in August this year, the Food inflation rate surged to 29.34% on a year-on-year basis, which was 6.22% points higher compared to the 23.12% rate recorded in August last year.
It linked the high 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 Bureau explained that on a month-on-month basis, the Food inflation rate in August 2023 was 3.87%, this was 0.41% points higher than the 3.45%). rate recorded in the preceding month and linked the price surge in Food inflation rate to increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Fish, Oil and Fat, Coffee, Tea, and Cocoa.
The average annual rate of Food inflation for the twelve months ending August 2023 over the previous twelve-month average was 25.01%, which was 5.99% points increase from the average annual rate of change recorded in August 2022 (19.02%).
On “All Items Less Farm Produce And Energy (Core Inflation)” inflation rate, the statistic agency , in form of a Note to guide users of the data, that “before July, “all items less farm produces” is referred to as the Core inflation. This was because the prices of items that constitute energy were regulated by the government e.g., Petroleum Motor Spirit (PMS).
“Due to the deregulation of the sector and the removal of the fuel subsidy, all the items that constitute energy are now determined by market forces and hence their prices are termed volatiles. Therefore, Core inflation is referred to as all items index less farm produces and energy”, the NBS added.
It, therefore, reported that the “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 21.15% in August 2023 on a year-on-year basis; up by 4.03% points when compared to the 17.12% recorded in August 2022.
It noted 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.
The Bureau clarified that on a month-on-month basis, the Core Inflation rate was 2.18% in August 2023. It stood at 2.11% in July 2023, up by 0.07%. The average twelve-month annual inflation rate was 19.18% for the twelve months ending August 2023; this was 4.38% points higher than the 14.80% recorded in August 2022.
Also, the statistics agency informed potential users of the CPI data on State Profiles of the inflation rate that in analyzing price movements users should note that CPI is weighted by consumption expenditure patterns which differ across states and locations, hence the weight assigned to a particular Food or Non-Food item may differ from state to state, thereby making interstate comparisons of consumption basket inadvisable and potentially misleading.
In the CPI report, the Bureau disclosed that in August 2023, All Items Inflation rate on a year-on-year basis was highest in Kogi at 31.50%, followed by Lagos at 29.17%, and Rivers at 29.06%, while Sokoto at 20.91%, Borno at 21.77% and Nasarawa at 22.25% recorded the slowest rise in headline inflation rates on a year-on-year basis.
The NBS added that on a month-on-month basis, however, August 2023 recorded the highest increases in Kwara at 6.07%, followed by Osun at 4.36%, and Kogi at 4.35%, while Sokoto at 1.38%, Borno at 1.73% and Ogun at 1.89 recorded the slowest rise on month-on-month All Items Inflation rates.
The statistics agency further reported that Food Inflation on a year-on-year basis in the month under review was highest in Kogi at 38.84%, followed by Lagos at 36.04%, and Kwara at35.33%, while Sokoto at 20.09%, Nasarawa at 24.35% and Jigawa at 24.53% recorded the slowest rise in Food inflation on a year-on-year basis.
