Disruption in the supply of food products, increase in import cost due to the persistent currency depreciation, and general increase in the cost of production have been cited for pushing inflation to a new high of 20.52% in August.
The National Bureau of Statistics (NBS), said this in its latest Consumer Price Index (CPI) report released yesterday, in Abuja.
The CPI, which measures inflation, stood at 20.52% year-on-year in August representing a 3.52% rise above the headline inflation rate of 17.01% in the corresponding period of 2021.
However, on a month-on-month basis, the headline inflation rate in August fell marginally by 0.05% to 1.77%, compared to 1.82% recorded in July.
According to the report, “Decline in current month food index relative to the reference month index which is due to harvest season, and relative stability in transportation cost due to availability of fuel,” were responsible for the fall in the monthly rate of inflation.
Food inflation
Food inflation rose to 23.12% in August year-on-year, a 2.82% increase compared to 20.30% recorded in the same period. “This rise in the food inflation was caused by increases in prices of bread and cereals, potatoes, yams and other tubers, fish, meat, oil and fat,” the NBS report said.
But on a month-on-month basis, the report indicated that the food inflation rate was 0.07% lower at 1.98% against 2.04% recorded in July, which it attributed to a reduction in prices of some food items like tubers, garri, local rice and vegetables.
Overall, the average annual rate of food inflation for the 12-month period ending August 2022 over the previous 12-month average was 19.02%, a 1.48% decline from the average annual rate of change recorded in August 2021 at 20.50%.
Decline in current month food index relative to the reference month index is due to harvest season, and relative stability in transportation cost due to availability of fuel.
Measurement change
The report said the percentage change in the average CPI for the 12 months ending August, over the average of the CPI for the previous 12 months period was 17.07%. “This is showing a 0.47% increase compared to 16.60% recorded in August 2021,” it said.
It added that increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.
Similarly, the urban inflation rate on a year-on-year basis in August, was 20.95%, or 3.36% higher compared to the 17.59% recorded in August 2021.
While on a month-on-month basis, the urban inflation rate was 1.79% in August, a 0.03% decline compared to July at 1.82%.
Also, the rural inflation rate in August was 20.12% on a year-on-year basis, 3.69% higher compared to 16.43% recorded in August 2021.
“While on a month-on-month basis, the rural inflation rate in August was 1.75% down by 0.06% compared to July 1.81%,” it added.
Core inflation
The CPI report also said the “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 17.20% in August on a year-on-year basis; a 0.94% rise compared to 16.26% recorded in July.
On a month-on-month basis, the core inflation rate was 1.59% in August, down by 0.17% against the 1.75% recorded in July.
The report said the highest increases were recorded in prices of Gas, Liquid fuel, Solid fuel, Passenger transport by road, Passenger transport by Air, fuel and lubricants for personal transport equipment, Cleaning, Repair and Hire of clothing.
Inflation in the states
During the month in review, the CPI report said all items inflation rate on a year-on-year basis was highest in Ebonyi 25.33%, Rivers 23.70%, Bayelsa 23.01%, while Jigawa 17.30%, Borno 17.56% and Zamfara 18.04% recorded the slowest rise.
On a month-on-month basis, August recorded the highest increase in Anambra with 2.78%; Ondo 2.53%; and Nasarawa 2.40%, while the slowest rise was recorded in Yobe 0.68%, Borno 0.84%, and Zamfara 0.98%.
Food inflation on a year-on-year basis was highest in Kwara (30.80%), Ebonyi (28.06%) and Rivers (27.64%), while Jigawa (17.77%), Zamfara (18.79%) and Oyo (19.80%) recorded the slowest rise on year-on-year food inflation.
However, on a month-on-month basis, August food inflation was highest in Anambra 3.05%, Ondo 2.92%, and Bauchi 2.78%, slowest in Yobe 0.46%, Oyo 0.89% and Delta 0.94%.
