Food, non-alcoholic beverages, others drive inflation rate to 25.80%

Food and non-alcoholic Beverages and housing were major drivers of the inflation rate in August 2023, as inflation soared to 25.80 per cent.

The National Bureau of Statistics (NBS) disclosed this on Friday in its Consumer Price Index (CPI). The rate rose from 24.08 per cent recorded in July of the same year.

“In August 2023, the headline inflation rate increased to 25.80% relative to the July 2023 headline inflation rate which was 24.08%. Looking at the movement, the August 2023 headline inflation rate shows an increase of 1.72% points when compared to the July 2023 headline inflation rate.

On a year-on-year basis, the headline inflation rate was 5.27% points higher compared to the rate recorded in August 2022, which was 20.52%.

“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),” the CPI report reads.

On a month-on-month basis, the headline inflation rate was 3.18 per cent in August 2023, compared to 2.89 per cent posted in the month before.

However, the bureau said: “The percentage change in the average CPI for the twelve-month period ending August 2023 over the average of the CPI for the previous twelve-month period was 22.38%, showing a 5.31% increase compared to 17.07% recorded in August 2022.”

The inflation rate in urban locations was put at 27.69 per cent in the review period, against the 20.95 per cent recorded in August 2022.

READ ALSO:Nigeria’s inflation rate up from 22.41, hits 22.79 in June

On a month-on-month basis, the Urban inflation rate was “3.29% in August 2023, this was 0.24% points higher compared to July 2023 (3.05%). The corresponding twelve-month average for the Urban inflation rate was 23.46% in August 2023. This was 5.87% points higher compared to the 17.59% reported in August 2022,” NBS said.

Also, on the rural inflation rate, the NBS disclosed that it was 24.10 per cent on a year-on-year basis in August 2023, higher than the 20.12 per cent reported in the corresponding period last year.

The rural inflation rate, on a month-on-month basis, was 3.08 per cent in August 2023, up by 0.34 per cent points compared to July 2023, when the NBS recorded 2.74 per cent.

According to the bureau, “The corresponding twelve-month average for the Rural inflation rate in August 2023 was 21.39%. This was 4.81% points higher compared to the 16.58% recorded in August 2022.”

It was gathered that food inflation swung upwards to 29.34 per cent in the review month, above last year August’s 23.12 per cent.

The increase was supported by hikes in prices of Oil and fat, Bread and cereals, Fish, Fruit, Meat, Vegetables and Potatoes, Yam and other Tubers, Vegetable, Milk, Cheese and Eggs.

Although, on a month-on-month basis, increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Fish, Oil and Fat, Coffee, Tea, and Cocoa were major drivers.

On a month-on-month movement, the CPI report said the Food inflation rate in August 2023 was 3.87 per cent, rising by 0.41 per cent points higher compared to 3.45 per cent recorded in July of the same year.

The report added: “The average annual rate of Food inflation for the twelve months ending August 2023 over the previous twelve-month average was 25.01%, which was 5.99% points increase from the average annual rate of change recorded in August 2022 (19.02%).”

Meanwhile, aside from Food and non-alcoholic beverages, other contributors to inflation growth are Housing water, Electricity, gas & other fuels, Clothing and footwear, Transport, as well as Furnishings and household Equipment & Maintenance.

Others include Education, Health, Miscellaneous goods and services, Restaurants and hotels, Alcoholic beverages, Tobacco and kola, Recreation and Culture and Communication.

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