Nigeria’s Inflation Keeps Steady Increases, Hits 25.80 Percent In August

By CLEMENT NWOJI, Abuja.

Nigeria’s consistent increases in monthly inflation records remained unabated in the month of August, 2023 as the statistics released by the National Bureau of Statistics (NBS) showed a leap to 25.80 percent for the month under review.

The main driver of the latest figure include increase in prices of food and Non-Alcoholic Beverages which accounted for 13.36 percent and was followed by increase in prices of Housing, Water, Electricity. Gas and Other Fuel which accounted for 4.32 percent.

Apart from the above items which currently constitute the major concerns of citizens as the hardship in Nigeria continues, other items contributing to the price increases are as listed in the table below.

Further break down of the statistics showed that in August 2023, the headline inflation rate increased to 25.80% relative to the July 2023 headline inflation rate which was 24.08%.

The NBS stated that, “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).

“Similarly, on a month-on-month basis, the headline inflation rate in August 2023 was 3.18%,
which was 0.29% points higher than the rate recorded in July 2023 (2.89%). This means that in
August 2023, on average, the general price level was 0.29% higher relative to July 2023.

“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″.

In respect of Urban inflation, the story is also the same as on a year-on-year basis, in August 2023, the Urban inflation rate was 27.69%, showing 6.73%
points higher compared to the 20.95% recorded in August 2022.

“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 stated.

Also on rural inflation, the rate in August 2023 was 24.10% on a year-on-year basis, showing 3.98%
points higher compared to the 20.12% recorded in August 2022.

While on a month-on-month basis, the Rural inflation rate in August 2023 was 3.08%, up by 0.34% points compared to July 2023 (2.74%). 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