By Chidi Ugwu
The National Bureau of Statistics (NBS) on Monday released the latest inflation figures showing that the headline inflation rate further eased to 32.15% in August 2024 relative to the July 2024 headline inflation rate of 33.40%.
According to NBS, looking at the movement, the August 2024 headline inflation rate showed a decrease of 1.25% points when compared to the July 2024 headline inflation rate.
However, on a year-on-year basis, the headline inflation rate was 6.35% points higher compared to the rate recorded in August 2023 (25.80%). This shows that the headline inflation rate (year-on-year basis) increased in August 2024 when compared to the same month in the preceding year (i.e., August 2023).
Furthermore, on a month-on-month basis, the headline inflation rate in August 2024 was 2.22%, which was 0.06% lower than the rate recorded in August 2024 (2.28%). This means that in August 2024, the rate of increase in the average price level is lower than the rate of increase in the average price level in July 2024.
The percentage change in the average CPI for the twelve months period ending August 2024 over the average of the CPI for the previous twelve months period was 31.26%, showing 8.88% increase compared to 22.38% recorded in August 2023.
The NBS further noted that on a year-on-year basis, August 2024 Urban inflation rate was 34.58%, this was 6.89% points higher compared to the 27.69% recorded in August 2023. On a month-on-month basis, the Urban inflation rate was 2.39% in August 2024, this was 0.07% points lower compared to July 2024 (2.46%). The corresponding twelve-month average for the Urban inflation rate was 33.44% in August 2024.
“This was 9.98% points higher compared to the 23.46% reported in August 2023.
“The Rural inflation rate in August 2024 was 29.95% on a year-on-year basis; this was 5.85% higher compared to the 24.10% recorded in August 2023. On a month-on-month basis, the Rural inflation rate in August 2024 was 2.06%, down by 0.04% points compared to July 2024
(2.10%).
“The corresponding twelve-months average for the Rural inflation rate in August 2024 was 29.32%. This was 7.93% higher compared to the 21.39% recorded in August 2023.
“The Food inflation rate in August 2024 was 37.52% on a year-on-year basis, which was 8.18% points higher compared to the rate recorded in August 2023 (29.34%).
“The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following items, Bread, Maize Grains, Guinea Corn, etc (Bread and Cereals Class), Yam, Irish Potatoes, Water Yam, Cassava Tuber, etc (Potatoes, Yam & Other Tubers Class), Palm Oil, Vegetable, etc (Oil & Fats Class) and
Ovaltine, Milo, Lipton, etc (Coffee, Tea & Cocoa Class).
“On a month-on-month basis, the Food inflation rate in August 2024 was 2.37% which shows a 0.10% decrease compared to the rate recorded in July 2024 (2.47%).
“The fall can be attributed to the decline in the rate of increase in the average prices of Tobacco, Tea, Coco, Coffee, Groundnut Oil, Milk, Yam, Irish Potatoes, Water Yam, Cassava Tuber, Palm Oil, Vegetable etc.
“The average annual rate of Food inflation for the twelve months ending August 2024 over the previous twelve-month average was 36.99%, which was 11.98% points increase from the average annual rate of change recorded in August 2023 (25.01%).
“The “All items less farm produces and energy” or Core inflation, which excludes the prices of volatile agricultural produces and energy stood at 27.58% in August 2024 on a year-on-year basis; up by 6.43% when compared to the 21.15% recorded in August 2023.
“The highest increases were recorded in prices of the following items, Rents (Actual and Imputed Rentals for Housing Class), Bus Journey intercity, Journey by motorcycle, etc (under Passenger Transport by Road Class), and Accommodation Service, Laboratory service, X-ray photography, Consultation Fee of a medical doctor, etc (under Medical Services Class).
“On a month-on-month basis, the Core Inflation rate was 2.27% in August 2024. It stood at 2.16% in July 2024, increased by 0.11%. The average twelve-months annual inflation rate was 25.18% for the twelve-months ending August 2024; this was 6% points higher than the 19.18% recorded in August 2023.
“In August 2024, All Items inflation rate on a Year-on-Year basis was highest in Bauchi (46.46%), Kebbi (37.51%) and Jigawa (37.43%), while Benue (25.13%), Delta (26.86%) and Imo (28.05%) recorded the slowest rise in Headline inflation on Year-on-Year basis. On a Month-on-Month basis, however, August 2024 recorded the highest increases in Kwara (4.45%), Bauchi (4.22%), Adamawa (3.99%), while Ogun (0.21%), Abuja (0.92%) and Kogi (1.14%) recorded the slowest rise on Month-on-Month inflation.
“In August 2024, Food inflation on a Year-on-Year basis was highest in Sokoto (46.98%), Gombe (43.25%), and Yobe (43.21%) while Benue (32.33%), Rivers (33.01%) and Bayelsa (33.36%), recorded the slowest rise in Food inflation on Year-on-Year basis. On a Month-on-Month basis, however, August 2024 Food inflation was highest in Adamawa (5.46%),Kebbi (4.48%), and Borno (3.88%), while Ogun (0.08%), Akwa-Ibom (0.45%) and Sokoto (1.00%) recorded the slowest rise in Food inflation on Month-on-Month basis”.
