Nigeria’s inflation hits 13.22%

Nigeria’s inflation rate has continued its 29-month surge, rising to 13.22% in August, 0.40% points higher than the 12.82% recorded in July 2020, the National Bureau of Statistics (NBS) revealed.

The latest Consumer Price Index (CPI) report released on Tuesday revealed that the over two-year high is largely due to the supply disruption of goods and services caused by the COVID-19 pandemic.

The NBS added that on a month-on-month basis, the headline index increased by 1.34% in August 2020.

“The Consumer Price Index, (CPI) which measures inflation increased by 13.22 percent (year-on-year) in August 2020. This is 0.40 percent points higher than the rate recorded in July 2020 (12.82 percent).

“The percentage change in the average composite CPI for the twelve months period ending August 2020 over the average of the CPI for the previous twelve months period was 12.23 percent, representing a 0.18 percent point rise from 12.05 percent recorded in July 2020,” the report read .

The report also showed that food inflation hit the 16% mark in the month in review from the 15.48% recorded in July, signaling the impact of rising prices of basic food items.

“This rise in the food index was caused by an increase in prices of bread and cereals, potatoes, yam, and other tubers, meat, fish, fruits, oils and fats, and vegetables.

It added that “On a 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”, it added.

Meanwhile, core inflation which excludes the prices of volatile agricultural produce stood at 10.52 percent in August 2020, up by 0.42 percent when compared with 10.10 percent recorded in July 2020.

The report further revealed  that urban inflation rose to 13.83% year on year from the 13.40% recorded in July, but on a month on month basis, the index climbed 1.42%, while rural inflation stood at 12.65%.

It added that inflation was highest in Kogi (17.29%), Bauchi (15.77%), Ebonyi, and Yobe (14.71%), while Lagos (11.45%), Kwara (11.22%), and Abuja (11.17%) recorded the slowest rise in headline Year on Year inflation.

The Central Bank had predicted that inflation is likely to rise up to 14.15% at the end of December due to supply shocks as a result of the coronavirus pandemic, which has curtailed economic activity and created disruptions.