The National Bureau of Statistics (NBS) reported on Monday that in August this year, Nigeria’s headline inflation rate further eased to 32.15% relative to the 33.40% headline inflation rate reported in the preceding month.
The statistics agency, in the ‘Consumer Price Index August 2024’ report posted on its website, indicated that looking at the movement, the August 2024 headline inflation rate represented a decrease of 1.25% points when compared to the July 2024 headline inflation rate.
It, however, reported that on a year-on-year basis, the headline inflation rate was 6.35% points higher compared to the 25.80% headline inflation rate recorded in August 2023
The Bureau further clarified that on a month-on-month basis, the headline inflation rate in August 2024 was 2.22%, which was 0.06% lower than the 2.28% rate recorded in the preceding month, implying that in the month under review, the rate of increase in the average price level is lower than the rate of increase in the average price level in July 2024.
According to the report, the percentage change in the average CPI for the twelve months period ending August 2024 over the average of the CPI for the previous twelve months period was 31.26%, showing 8.88% increase compared to 22.38% recorded in August 2023.
A further analysis of the CPI report reflected that on a year-on-year basis, August 2024 Urban inflation rate was 34.58%, representing 6.89% points increase compared to the 27.69% recorded in August 2023 while on a month-on-month basis, the Urban inflation rate was 2.39% in August this, which was 0.07% points lower compared to 2.46% recorded in the preceding month.
The Bureau stated that the corresponding twelve-month average for the Urban inflation rate was 33.44% in August this year, which showed a 9.98% points higher compared to the 23.46% reported in August 2023.
In addition, it reported that the Rural inflation rate in August 2024 rose to 29.95% on a year-on-year basis, representing 5.85% higher compared to the 24.10% recorded in the corresponding month of last year.
This is even as the report showed that on a month-on-month basis, the Rural inflation rate in August 2024 slowed to 2.06%, down by 0.04% points compared to 2.10% rate in July this year. This implies that the corresponding twelve-months average for the Rural inflation rate in August 2024 was 29.32%, and 7.93% higher compared to the 21.39% recorded in August 2023.
On Food inflation rate in the month under review, the NBS reported that in August 2024, the rate rose to 37.52% on a year-on-year basis, which was 8.18% points higher compared to the 29.34% inflation rate recorded in August 2023.
It attributed that the rise in Food inflation on a year-on-year basis to increases in prices of Bread, Maize Grains, Guinea Corn, etc (Bread and Cereals Class), Yam, Irish Potatoes, Water Yam, Cassava Tuber, etc (Potatoes, Yam & Other Tubers Class), Palm Oil, Vegetable, etc (Oil & Fats Class) and Ovaltine, Milo, Lipton, etc (Coffee, Tea & Cocoa Class).
The CPI report revealed that on a month-on-month basis, the Food inflation rate in August 2024 was 2.37%, representing 0.10% decrease compared to the 2.47% rate recorded in July 2024.
The statistics agency attributed the month-on-month to decline in the rate of increase in the average prices of Tobacco, Tea, Coco, Coffee, Groundnut Oil, Milk, Yam, Irish Potatoes, Water Yam, Cassava Tuber, Palm Oil, Vegetable etc.
It noted that the average annual rate of Food inflation for the twelve months ending August 2024 over the previous twelve-month average was 36.99%, which was 11.98% points increase from the average annual rate of change recorded in August 2023 (25.01%).
The Bureau further reported that in the month under review, the “All items less farm produces and Energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy rose to 27.58% on a year-on-year basis, indicating 6.43% increase when compared to the 21.15% recorded in August 2023.
It noted that the highest increases were recorded in prices of Rents (Actual and Imputed Rentals for Housing Class), Bus Journey intercity, Journey by motorcycle, etc (under Passenger Transport by Road Class), and Accommodation Service, Laboratory service, X-ray photography, Consultation Fee of a medical doctor, etc (under Medical Services Class).
The report also showed that on a month-on-month basis, the Core Inflation rate was 2.27% in August 2024 compared to 2.16% recorded in July 2024, which increased by 0.11% while he average twelve-months annual inflation rate also rose to 25.18% for the twelve-months ending August 2024, indicating 6% points higher than the 19.18% recorded in the corresponding month of last year.
