. As monthly indices continue rising
Yearly inflation rate has maintained the downward side to 17.01% in August, lower than the 17.38% recorded in July, the consumer price index (CPI), which measures the average changes in the prices of goods and services, has revealed.
The CPI report released today (Wednesday), by National Bureau of Statistics (NBS), however shows that while the yearly rate for most of the indexes except the rural inflation continued to decelerate, the monthly indices excluding urban retained a rising profile.
Highlights of the CPI report:
According to the NBS, the rate of the headline inflation in August was 0.37% lower year-on-year (y-y) than in the month of July, but 0.09% higher month-on-month (m-m).
“The percentage change in the average composite CPI for the twelve months period ending August 2021 over the average of the CPI for the previous twelve months period was 16.60 percent, showing 0.30 percent point from 16.30 percent recorded in July 2021,” the report said.
On a month-on-month basis, the urban index was 0.08% higher in August, while the rural index 0.12% above the July rate.
“The corresponding twelve-month year-on-year average percentage change for the urban index is 17.19 percent in August 2021. This is higher than 16.89 percent reported in July 2021, while the corresponding rural inflation rate in August 2021 is 16.03 percent compared to 15.73 percent recorded in July 2021,” the NBS explained.
For the food index, the CPI attributed the inflation in August to “increases in prices of bread and cereals, milk, cheese and egg, oils and fats, potatoes, yam and other tuber, food product n.e.c, meat and coffee, tea and cocoa.”
The report continues: “On month-on-month basis, the food sub-index increased by 1.06 percent in August 2021, up by 0.20 percent points from 0.86 percent recorded in July 2021.
“The average annual rate of change of the Food sub-index for the twelve-month period ending August 2021 over the previous twelve-month average was 20.50 percent, 0.34 percent points from the average annual rate of change recorded in July 2021 (20.16) percent.
“The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.41 percent in August 2021, down by 0.31 percent when compared with 13.72 percent recorded in July 2021.
“On month-on-month basis, the core sub-index increased by 0.77 percent in August 2021. This was down by 0.54 percent when compared with 1.31 percent recorded in July 2021.”
This rise in the food index was caused by increases in prices of Bread and cereals, milk, cheese and egg, oils and fats, potatoes, yam and other tuber, food product n.e.c, meat and coffee, tea and cocoa.
Items such as shoes and other footwear, household textile, motor cars, garments, game of chance, major household appliances whether electric or not, hospital services, catering services, appliances, articles and products for personal care and Clothing materials, other articles of clothing and clothing accessories recorded the highest increases.
“The average 12-month annual rate of change of the index was 12.29 percent for the twelve-month period ending August 2021; this is 0.24 percent points higher than 12.05 percent recorded in July 2021,” the report said.
In terms of food, prices were highest year-on-year in Kogi (28.76%), Oyo (23.69%) and Gombe (22.37%), while River (17.69%), Edo (17.26%) and Bauchi (17.24%) recorded the slowest rise in year on year food inflation.
On the other hand, month-on-month, Ekiti (2.70%), Abuja (2.62%) and Akwa Ibom (2.50%), recorded the highest rates, while Lagos (0.04%) and Edo (0.08%) recorded the slowest rise. Kaduna recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).