Nigeria’s Headline Inflation Hits 13.22% YoY In August; 0.40% Higher Than July

The consumer price index, (CPI) which measures inflation increased by 13.22 percent (year-on-year) in August 2020, representing an increase of  0.40 percent points higher than 12.82 percent in July 2020, according to the latest report from the National Bureau of Statistic, NBS.

NBS noted that Increases were recorded in all COICOP divisions that yielded the Headline index.

According to NBS, on a month-on-month basis, the Headline index increased by 1.34 percent in August 2020, representing 0.09 percent higher than 1.25 percent in July 2020.

A breakdown of the report showed that the percentage change in the average composite CPI for the twelve months period ended  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.

Also, the urban inflation rate increased by 13.83 percent (year-on-year) in August 2020 from 13.40 percent recorded in July 2020, while the rural inflation rate increased by 12.65 percent in August 2020 from 12.28 percent in July 2020.

On a month-on-month basis, NBS noted that the urban index rose by 1.42 percent in August 2020, up by 0.15 from 1.27 percent recorded in July 2020, while the rural index also rose by 1.27 percent in August 2020, up by 0.04 against 1.23 percent in July 2020.

To this end, the corresponding twelve-month year-on-year average percentage change for the urban index was 12.85 percent in August 2020,  higher than 12.66 percent reported in July 2020, while the corresponding rural inflation rate in August 2020 was 11.66 percent compared to 11.49 percent recorded in July 2020.

Food Index

The composite food index rose by 16.00 percent in August 2020 compared to 15.48 percent in July 2020.

This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Fish, Fruits, Oils and fats, and Vegetables.

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.

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).

All Items Less Farm Produce

The “All items less farm produce” (or 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.

On a month-on-month basis, the core sub-index increased by 1.05 percent in August 2020. This was up by 0.30 percent when compared with 0.75 percent recorded in July 2020.

The highest increases were recorded in prices of Passenger transport by air, Hospital services, Medical services, Pharmaceutical products, Maintenance and repair of personal transport equipment, vehicle spare parts, Motor cars, Passenger transport by road, Miscellaneous services relating to the dwelling, Repair of furniture and Paramedical services.

The average 12-month annual rate of change of the index was 9.64 percent for the twelve-month period ending August 2020.  This is 0.16 percent points higher than 9.48 percent recorded in July 2020.

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