Rising Food Prices Push Nigeria’s Inflation To 25.8% In August

Nigeria’s headline has surpassed both local and foreign forecasts to hit 25.8 per cent in August 2023, relative to July 2023 headline inflation rate which was 24.08 percent.

The August 2023 inflation rate shows an increase of 1.72 percent points when compared to the July 2023 headline inflation rate, according to the National Bureau of Statistics (NBS).

Food inflation rate in August 2023 was 29.34 per cent on a year-on-year basis, which was

6.22  points higher compared to the rate recorded in August 2022 (23.12 per cent).

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, vegetables, milk, cheese and eggs.

On a year-on-year basis, the headline inflation rate was 5.27 per cent points higher compared to the rate recorded in August 2022, which was 20.52 per cent. This shows that the headline inflation rate (year-on-year basis) increased in August 2023 when compared to the same month in the preceding year (i.e., August 2022).

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

The figure that was released by NBS yesterday showed that percentage change in the average CPI for the twelve months ending August 2023 over the average of the inflation index for the previous 12-month period was 22.38 per cent , showing a 5.31 per cent increase compared to 17.07 per cent recorded in August 2022.

On a year-on-year basis, in August 2023, the Urban inflation rate was 27.69 per cent, this was 6.73 per cent points higher compared to the 20.95 per cent recorded in August 2022. On a month-on-month basis, the Urban inflation rate was 3.29 per cent in August 2023, this was 0.24 percent points higher compared to July 2023 (3.05 per cent).

The corresponding 12-month average for the Urban inflation rate was 23.46 per cent in August 2023. This was 5.87 per cent points higher compared to the 17.59 per cent reported in August 2022.

The Rural inflation rate in August 2023 was 24.10 per cent on a year-on-year basis; this was 3.98 per cent points higher compared to the 20.12 percent recorded in August 2022. On a month-on-month basis, the Rural inflation rate in August 2023 was 3.08 percent, up by 0.34 per cent points compared to July 2023 (2.74 per cent).

The corresponding 12-month average for the Rural inflation rate in August 2023 was 21.39 per cent This was 4.81 per cent points higher compared to the 16.58 per cent recorded in August 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 points higher compared to the rate recorded in July 2023 (3.45 per cent).

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 12-month average was 25.01 per cent, which was 5.99 per cent points increase from the average annual rate of change recorded in August 2022 (19.02 per cent).