Inflation Rate Spikes to 25.08% over High Food Prices

Inflation Rate Spikes to 25.08% over High Food Prices

Supported by high food prices in the market, Nigeria’s headline inflation rate spiked by 172 basis points to 25.80% in August 2023, the National Bureau of Statistics (NBS) said in a report released on Friday.

In August 2023, the headline inflation rate increased to 25.80% from 24.08% in July. Looking at the movement, the August 2023 headline inflation rate shows an increase of 1.72% points when compared to the July 2023 headline inflation rate, the statistics office said.

On a year-on-year basis, the headline inflation rate was 5.27% points above 20.52% reported in the previous month. This shows that the headline inflation rate increased year on year in August 2023 when compared to the same month in the preceding year – August 2022.

Similarly, on a month-on-month basis, the headline inflation rate in August 2023 was 3.18%, which was 0.29% points higher than the rate recorded in July 2023 (2.89%). This means that in August 2023, on average, the general price level was 0.29% higher relative to July 2023.

NBS said 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.

URBAN INFLATION

On a year-on-year basis, in August 2023, the urban inflation rate was 27.69%, this was 6.73% points higher compared to the 20.95% recorded in August 2022.  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 corresponding twelve-month average for the Urban inflation rate was 23.46% in August 2023. This was 5.87% points higher compared to the 17.59% reported in August 2022.

RURAL INFLATION

The Rural inflation rate in August 2023 was 24.10% on a year-on-year basis; this was 3.98% points higher compared to the 20.12% recorded in August 2022.

On a month-on-month basis, the rural inflation rate in August 2023 was 3.08%, up by 0.34% points compared to July 2023 (2.74%).

The corresponding twelve-month average for the rural inflation rate in August 2023 was 21.39%. This was 4.81% points higher compared to the 16.58% recorded in August 2022.

The Food inflation rate in August 2023 was 29.34% on a year-on-year basis, which was 6.22% points higher compared to the rate recorded in August 2022 (23.12%).

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.

On a month-on-month basis, the Food inflation rate in August 2023 was 3.87%, this was 0.41% points higher compared to the rate recorded in July 2023 (3.45%).

The rise in Food inflation on a month-on-month basis was caused by 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 a 5.99% points increase from the average annual rate of change recorded in August 2022 (19.02%). #Inflation Rate Spikes to 25.08% over High Food Prices Naira Devaluation Deepens Economic Crisis in Nigeria

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