Inflation Rises To 25.80%, 18-Year High
Inflation has surged 18-year high to 25.80 per cent in August 2023, rising 1.72 points higher than the 24.08 per cent recorded in the previous month.
The new rate is the eighth time consecutive jump in the year, pushed up by the rising food prices across the country, aided by the impact of the bold reforms on subsidy and unification of the foreign exchange windows.
The National Bureau of Statistics (NBS) in the August Consumer Price Index (CPI) report released on Friday attributed the significant increase to the removal of petrol subsidies and the devaluation of the official exchange rate on consumer prices. Month-on-month inflation, according to the agency rose to 3.18 per cent in the review month from 2.89 per cent recorded in the prior month.
In terms of contribution to the year-on-year inflation, Food and non-alcoholic beverages (13.36%) contributed the most, followed by housing water, electricity, gas and other fuel (4.32%), and clothing and footwear (1.97%).
On a year-on-year basis, in August 2023, the Urban inflation rate was 27.69 per cent, which was 6.73 per cent points higher compared to the 20.95 per cent recorded in August 2022. The Rural inflation rate stood at 24.10 per cent, representing a 3.98 per cent points increase compared to the 20.12 per cent recorded in August 2022.
The food inflation rate jumped to 29.34 per cent in August 2023, representing a 2.35 per cent point increase from 26.98 per cent recorded in the previous month and 6.22 per cent points higher than 23.12 per cent recorded in the corresponding period of 2022.
On a month-on-month basis, the Food inflation rate in August 2023 was 3.87 per cent, this was 0.41 per cent higher compared to the rate recorded in July 2023 (3.45%).
The average annual rate of Food inflation for the twelve months ending August 2023 over the previous twelve-month average was 25.01 per cent, which was a 5.99 per cent decrease from the average annual rate of change recorded in August 2022 (19.02%).
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 per cent in August 2023 on a year-on-year basis; up by 0.67 per cent when compared to the 20.47 per cent recorded in July 2023.
On a month-on-month basis, the Core Inflation rate was 2.18 per cent in August 2023. It stood at 2.11 per cent in July 2023, up by 0.07 per cent.
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.
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.
In August 2023, all items inflation rate on a year-on-year basis was highest in Kogi (31.50%), Lagos (29.17%), and Rivers (29.06%), while Sokoto (20.91%), Borno (21.77%) and Nasarawa (22.25%) recorded the slowest rise in headline inflation on a year-on-year basis.
Food inflation on a year-on-year basis was highest in Kogi (38.84%), Lagos (36.04%), and Kwara (35.33%), while Sokoto (20.09%), Nasarawa (24.35%) and Jigawa (24.53%) recorded the slowest rise in Food inflation on a year-on-year basis.
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