Nigeria Inflation Rate Drops to 32.15% in August 2024, While Food Inflation Rises

Nigeria Inflation Rate Drops to 32.15% in August 2024, While Food Inflation Rises, The NBS said this in its Consumer Price Index (CPI) and Inflation Report for August 2024, which was released in Abuja on Monday. According to the report, the figure is 1.25% points lower compared to the 33.40% recorded in July 2024.

It said on a year-on-year basis, the headline inflation rate in August 2024 was 6.35% higher than the rate recorded in August 2023 at 25.80%. In addition, the report said on a month-on-month basis, the headline inflation rate in August 2024 was 2.22%, which was 0.06% lower than the rate recorded in July 2024 at 2.28%.

“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.

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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%.

“This indicates an 8.88% increase compared to 22.38% recorded in August 2023.”

The report said the food inflation rate in August 2024 increased to 37.52% on a year-on-year basis, which was 8.18% higher compared to the rate recorded in August 2023 at 29.34%.

“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, 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%, which was a 0.10% decrease compared to the rate recorded in July 2024 at 2.24%.

“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 vegetable 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% in August on a year-on-year basis.

“This increased by 6.43% compared to 21.15% 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% in August 2024.

“This indicates a 0.11% increase compared to what was recorded in July 2024 at 2.16%.

“The average 12-month annual inflation rate was 25.18% for the 12 months ending August 2024, this was 6.00% points higher than the 19.18% recorded in August 2023.”

The report said on a year-on-year basis in August 2024, the urban inflation rate was 34.58%, which was 6.89% higher compared to the 27.69% recorded in August 2023.

“On a month-on-month basis, the urban inflation rate was 2.39%, which decreased by 0.07% compared to July 024 at 2.46%.’’

The report said on a year-on-year basis in August 2024, the rural inflation rate was 29.95%, which was 5.87% higher compared to the 24.10% recorded in August 2023.

“On a month-on-month basis, the rural inflation rate was 2.06%, which decreased by 0.04% compared to July 2024 at 2.10%.’’

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%, followed by Kebbi at 37.51%, and Jigawa at 37.43%. It, however, said the slowest rise in headline inflation on a year-on-year basis was recorded in Benue at 25.13%, followed by Delta at 28.86%, and Imo at 28.05%.

The report, however, said in August 2024, all item’s inflation rates on a month-on-month basis were highest in Kwara at 4.45%, followed by Bauchi at 4.22%, and Adamawa at 3.99%.

“Ogun at at 0.21%, followed by Abuja at 0.92% and Kogi at 1.14% 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%, followed by Gombe at 43.25%, and Yobe at 43.21%.

“Benue at 33.33%, followed by Rivers at 33.01% and Bayelsa at 33.36% 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%, followed by Kebbi at 4.48%, and Borno at 3.88%.

“Ogun at 0.08%, followed by Akwa Ibom at 0.45% and Sokoto at 1.00%, recorded the slowest rise in inflation on a month-on-month basis.”