The consumer price index which measures inflation rose by
0.40 percentage points between July and August 2020 on a year-on-year basis,
the highest increase recorded since October 2016.
According to the August CPI/Inflation report released by the
National Bureau of Statistics (NBS), the rate of inflation stood at 13.22
percent in August; higher than the 12.82 percent recorded in July.
Inflation measures the rate at which the prices of goods and
services increase over a period of time.
The last time Nigeria’s inflation rate was in this region
was in March 2018 when the economy was recovering from the 2016 recession and
inflation rate was on a decline from the 18 percent recorded during the
recession.
“On a month-on-month basis, the Headline index increased by
1.34 percent in August 2020. This is 0.09 percent higher than the rate recorded
in July 2020 (1.25 percent),” the report read.
“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.
“The composite food index rose by 16.00 percent in August 2020 compared to 15.48 percent in July 2020.”
According to the NBS, the 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.
Core inflation, which excludes the prices of volatile
agricultural produce, stood at 10.52 percent in August 2020, up by 0.42
percentage points when compared with 10.10 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.
On a year-on-year basis, the rate of increase in the prices
was recorded in Kogi (17.29 percent), Bauchi (15.77 percent) and Ebonyi and
Yobe (14.71 percent), while Lagos (11.45 percent), Kwara (11.22 percent) and
Abuja (11.17 percent) recorded the slowest rise in headline year-on-year
inflation.
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