The National Bureau of Statistics (NBS) reports that Nigeria’s headline inflation rate would fall further to 32.15 percent in August 2024. The NBS stated this in its Consumer Price Index (CPI) and Inflation Report for August 2024, which was published in Abuja on Monday.
According to the report, the figure is 1.25 percentage points lower than the 33.40 percent reported in July 2024. On a year-on-year basis, the headline inflation rate in August 2024 was 6.35 percent higher than the rate reported in August 2023 (25.80 percent).
Furthermore, the study stated that on a monthly basis, the headline inflation rate in August 2024 was 2.22 percent, which was 0.06 percent lower than the rate recorded in July 2024 of 2.28 percent.
“This means that in August 2024, the rate of increase in the average price level is lower than the rate of increase in the average price level in July 2024.”
The report said the increase in the headline index for August 2024 on a year-on-year basis and month-on-month basis was attributed to the increase in some items in the basket of goods and services at the divisional level. It said these increases were observed in food and non-alcoholic beverages, housing, water, electricity, gas, and other fuel, clothing and footwear, and transport.
Others were furnishings, household equipment and maintenance, education, health, miscellaneous goods and services, restaurants and hotels, alcoholic beverages, tobacco and kola, recreation and culture, and communication.
It said the percentage change in the average CPI for the 12 months ending August 2024 over the average of the CPI for the previous corresponding 12-month period was 31.26 percent.
“This indicates an 8.88 percent increase compared to 22.38 percent recorded in August 2023.”
The report said the food inflation rate in August 2024 increased to 37.52 percent on a year-on-year basis, which was 8.18 percent higher compared to the rate recorded in August 2023 at 29.34 percent.
“The rise in food inflation on a year-on-year basis is caused by increases in prices of bread, maize, grains, guinea corn, yam, Irish potatoes, water yam, and cassava tuber.
“Others are palm oil, vegetable oil, Ovaltine, Milo, Lipton, etc.”
It said on a month-on-month basis, the food inflation rate in August was 2.37 per cent, which was a 0.10 per cent decrease compared to the rate recorded in July 2024 at 2.24 per cent.
“The decline in food inflation on a month-on-month basis was caused by a decrease in the average prices of tobacco, tea, cocoa, coffee, groundnut oil, and milk.
“Others are yam, Irish potatoes, water yam, cassava tuber, palm oil, and vegetables, etc.”
The report said that “all items less farm produce and energy’’ or core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 27.58 per cent in August on a year-on-year basis.
“This increased by 6.43 per cent compared to 21.15 per cent recorded in August 2023.’’ “The exclusion of the PMS is due to the deregulation of the commodity by removal of subsidy.”
It said the highest increases were recorded in prices of rents, bus Journey intercity, Journey by motorcycle, etc. “Others are accommodation service, laboratory service, x-ray photography, consultation fee of a medical doctor, among others.”
The NBS said on a month-on-month basis, the core inflation rate was 2.27 percent in August 2024. “This indicates a 0.11 percent increase compared to what was recorded in July 2024 at 2.16 percent.
“The average 12-month annual inflation rate was 25.18 percent for the 12 months ending August 2024; this was 6.00 percent higher than the 19.18 percent recorded in August 2023.”
The report said on a year-on-year basis in August 2024, the urban inflation rate was 34.58 percent, which was 6.89 percent higher compared to the 27.69 percent recorded in August 2023.
“On a month-on-month basis, the urban inflation rate was 2.39 percent, which decreased by 0.07 percent compared to July 02 at 2.46 percent.’’
The report said on a year-on-year basis in August 2024, the rural inflation rate was 29.95 percent, which was 5.87 percent higher compared to the 24.10 percent recorded in August 2023.
“On a month-on-month basis, the rural inflation rate was 2.06 percent, which decreased by 0.04 percent compared to July 2024 at 2.10 percent.’’
On states’ profile analysis, the report showed that in August, all items’ inflation rate on a year-on-year basis was highest in Bauchi at 46.46 percent, followed by Kebbi at 37.51 percent, and Jigawa at 37.43 percent.
It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Benue at 25.13 percent, followed by Delta at 28.86 percent, and Imo at 28.05 percent.
The report, however, said in August 2024, all items inflation rate on a month-on-month basis was highest in Kwara at 4.45 percent, followed by Bauchi at 4.22 percent, and Adamawa at 3.99 percent.
“Ogun at 0.21 percent, followed by Abuja at 0.92 percent, and Kogi at 1.14 percent recorded the slowest rise in month-on-month inflation.”
The report said on a year-on-year basis, food inflation was highest in Sokoto at 46.98 percent, followed by Gombe at 43.25 percent, and Yobe at 43.21 percent. “Benue at 33.33 percent, followed by Rivers at 33.01 percent, and Bayelsa at 33.36 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 Adamawa at 5.46 percent, followed by Kebbi at 4.48 percent, and Borno at 3.88 percent.
“Ogun at 0.08 percent, followed by Akwa Ibom at 0.45 percent and Sokoto at 1.00 percent, recorded the slowest rise in inflation on a month-on-month basis.”
