Nigeria’s inflation rate rises 13.22% in Aug vs 12.82% in July ~NBS
By Samuel Bankole
Nigeria’s consumer price index (CPI) which measures inflation increased by 13.22 percent year-on-year in August 2020 compared with 12.82 percent in July, the National Bureau of Statistics (NBS) said on Tuesday.
In its latest report, the bureau said the increase in inflation figure in August represent 0.40 percent rise above the July figure.
Headline inflation on a month-on-month basis also rose by 1.34 percent in August, representing an increase of 0.09 percent than the 1.25 percent recorded in the previous month.
The food index rose by 16.00 percent in August 2020 compared with 15.48 percent in July 2020, driven by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Meat, Fish, Fruits, Oils and fats and Vegetables, the NBS stated in its report.
“On month-on-month basis, the food sub-index increased by 1.67 percent in August 2020, up by 0.15 percent points from 1.52 percent recorded in July 2020.
“The average annual rate of change of the Food sub-index for the twelve-month period ending August 2020 over the previous twelve-month average was 14.87 percent, representing a 0.24 percent points increase from the average annual rate of change recorded in July 2020 (14.63 percent).”
The country’s inflation figure has consistently on the rise while analysts are expecting further increase rate in the coming months due to the recent hike in prices of petrol and tariff in electricity consumption.
Recently, the bakers association threatened to increase the price of bread due to indiscriminate rise in the ingredients used in making confectionaries.
Analysts are, however anticipating a higher inflation figure for August above the 12.82 percent reported in the previous month, to be driven by increases in food prices.
The increase in July consumer inflation was driven mainly by food index which is seen to exacerbate in the coming month and push further the inflation growth.
Analysts at the Financial Derivatives Company, owned by the renowned economist, Bismack Rewane projected rise in inflation for the month of August to 12.95 percent against 12.82 percent in the previous month.