The National Bureau of Statistics (NBS) has reported that Nigeria’s inflation rate declined to 32.15% in August 2024. This marks the second consecutive decline in inflation this year, signaling potential stabilization in the country’s economy.
Consumer Price Index Report for August
The NBS released its latest consumer price index (CPI) report on September 16, 2024, revealing a 2.22% month-on-month decrease in inflation from July 2024. This report measures the changes in prices for goods and services and indicates a slowdown in the rate of price increases.
Food Inflation Also Sees Decline
Food inflation, a critical aspect of Nigeria’s overall inflation, also dropped to 37.52% in August. This reduction is attributed to a slight decrease in the prices of food and beverages.
Headline Inflation Comparison
On a year-on-year basis, the headline inflation rate in August 2024 was 6.35% higher than the 25.80% recorded in August 2023. Despite the overall annual increase, the monthly comparison shows that inflation growth is slowing down. The headline inflation rate dropped by 1.25 percentage points compared to July 2024.
Monthly Price Increase Moderation
The month-on-month inflation rate for August was recorded at 2.22%, slightly lower than July’s 2.28%. This indicates a reduced pace of price increases compared to the previous month.
Causes of Food Inflation
The increase in food inflation on a year-on-year basis was driven by the rising prices of staple items such as bread, maize grains, guinea corn, yams, potatoes, cassava, palm oil, and beverages like tea and coffee. However, on a month-to-month basis, the food inflation rate fell to 2.37% from July’s 2.47%, as the prices of several items, including groundnut oil, milk, and yams, saw less significant increases.
Annual Food Inflation Rate
The average annual food inflation rate for the twelve months ending in August 2024 was 36.99%, showing an 11.98 percentage point rise from the previous year’s average of 25.01%. This reflects a continued upward trend in food prices over the long term.
State-by-State Food Inflation
Food inflation varied significantly across states. Sokoto (46.98%), Gombe (43.25%), and Yobe (43.21%) recorded the highest year-on-year food inflation rates. In contrast, Benue (32.33%), Rivers (33.01%), and Bayelsa (33.36%) experienced the lowest food inflation.
Monthly Food Inflation by State
On a month-on-month basis, Adamawa (5.46%), Kebbi (4.48%), and Borno (3.88%) saw the highest food inflation rates. Meanwhile, states like Ogun (0.08%), Akwa Ibom (0.45%), and Sokoto (1.00%) experienced the slowest increases in food prices.
Future Threats
The decline in Nigeria’s inflation rate, especially food inflation, indicates a cautious optimism for economic stability. However, the overall high inflation rates continue to pose challenges, particularly in the cost of living for Nigerians.
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Written By Fortune Davidson