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Economic Woes: Nigeria’s Inflation Soars Amid Food Hike

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Nigeria’s headline inflation rate increased to 25.80 percent in August 2023, according to the National Bureau of Statistics (NBS) report.

The NBS disclosed this in its Consumer Price Index (CPI) and Inflation Report for August, which was released in Abuja on Friday.

According to the report, the figure, which is 1.72 percent higher compared to the 24.08 percent recorded in July 2023,

On a year-on-year basis, the headline inflation rate in August was 5.27 percent higher than the rate recorded in August 2022 at 20.52 percent.

“This shows that the headline inflation rate (on a year-on-year basis) increased in August 2023 when compared to the same period in August 2022.”

The report said the contributions of items on the divisional level to the increase in the headline index are food and non-alcoholic beverages at 13.36 percent and housing, water, electricity, gas, and other fuel at 4.32 percent.

Others were clothing and footwear at 1.97 percent; transport at 1.68 percent; furnishings, household equipment, and maintenance at 1.30 percent; education at 1.02 percent; and health at 0.78 percent.

“Miscellaneous goods and services at 0.43 percent; restaurants and hotels at 0.31 percent; alcoholic beverages, tobacco, and kola at 0.28 percent; recreation and culture at 0.18 percent; and communication at 0.18 percent.”

In addition, the report said that on a month-on-month basis, the headline inflation rate in August 2023 was 3.18 percent, which was 0.29 percent higher than the rate recorded in July 2023 at 2.89 percent.

“This means that in August 2023, on average, the general price level was 0.29 percent higher relative to July 2023.”

It said the percentage change in the average CPI for the 12 months ending August 2023 over the average of the CPI for the previous 12-month period was 22.38 percent.

“This indicates a 5.31 percent increase compared to the 17.07 percent recorded in August 2022.”

The report said the food inflation rate in August was 29.34 percent on a year-on-year basis, which was 6.22 percent higher compared to the rate recorded in August 2022 at 23.12 percent.

“The rise in food inflation is caused by increases in the prices of oil and fats, bread and cereals, fish, potatoes, yams, and other tubers, fruits, meat, vegetables, milk, cheese, and eggs.”

On a month-on-month basis, the food inflation rate in August was 3.87 percent, which was a 0.41 percent rise compared to the rate recorded in July at 3.45 percent.

“The rise in food inflation on a month-on-month basis was caused by increases in prices of bread and cereals, potatoes, yams, and other tubers, fish, oil, and fat, coffee, tea, and cocoa”.

The report said “all items less farm produce, or core inflation, which excludes the prices of volatile agricultural produce, stood at 21.15 percent in August on a year-on-year basis.

“This increased by 4.03 percent compared to 17.12 percent recorded in August 2022.’’

It said the highest increases were recorded in the prices of passenger transport by air and road, gas, vehicle spare parts, medical services, maintenance and repair of personal transport equipment, etc.

The NBS said on a month-on-month basis, the core inflation rate was 2.18 percent in August 2023.

“This indicates a 0.07 percent rise compared to what was recorded in July 2023 at 2.11 percent.”

“The average 12-month annual inflation rate was 19.18 percent for the 12 months ending August 2023; this was 4.38 percentage points higher than the 14.80 percent recorded in August 2022.”

The report said on a year-on-year basis in August, the urban inflation rate was 27.69 percent, which was 6.73 percent higher compared to the 20.95 percent recorded in August 2022.

“On a month-on-month basis, the urban inflation rate was 3.29 percent in August, representing a 0.24 percent rise compared to July 2023 at 3.05 percent.’’

The report said on a year-on-year basis in August, the rural inflation rate was 24.10 percent, which was 3.98 percent higher compared to the 20.12 percent recorded in August 2022.

“On a month-on-month basis, the rural inflation rate was 3.08 percent, which increased by 0.34 percent compared to July 2023 at 2.74 percent.’’

On states’ profile analysis, the report showed in August that all item inflation rates on a year-on-year basis were highest in Kogi at 31.50 percent, followed by Lagos at 29.17 percent, and Rivers at 29.06 percent.

It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Sokoto at 20.91 percent, followed by Borno at 21.77 percent, and Nasarawa at 22.25 percent.

The report, however, said in August 2023, the all-items inflation rate on a month-on-month basis was highest in Kwara at 6.07 percent, Osun at 4.36 percent, and Kogi at 4.35 percent.

“Sokoto at 1.38 percent, followed by Borno at 1.73 percent, and Ogun at 1.89 percent, recorded the slowest rise in month-on-month inflation.”

The report said on a year-on-year basis, food inflation was highest in Kogi at 38.84 percent, followed by Lagos at 36.04 percent, and Kwara at 35.33 percent.

“Sokoto at 20.09 percent, followed by Nasarawa at 24.35 percent, and Jigawa at 24.53 percent, recorded the slowest rise in food inflation on a year-on-year basis.’’

The report, however, said on a month-on-month basis, food inflation was highest in Rivers at 7.12 percent, followed by Kwara at 5.89 percent and Kogi at 5.80 percent.

“Sokoto at 0.50 percent, followed by Abuja at 1.30 percent, and Niger at 1.40 percent, recorded the slowest rise on month-on-month food inflation.’’

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