Inflation hit 20.52% in August
The headline inflation rate in August 2022, rose to 20.52% on a year -on year basis, the Consumer Price Index of August 2022 released Thursday by the National Bureau of Statistics (NBS) has revealed.
The report which was obtained by our Correspondent in Abuja noted that the was 3.52% points higher compared to the rate recorded in August 2021, which was (17.01%).
The Bureau explained that the general price level in August 2022 was 3.52% higher relative to August 2021.
“This shows that the headline inflation rate increased in the month of August 2022 when compared to the same month in the preceding year (i.e. August 2021). Meaning that in August 2022, the general price level was 3.52% higher relative to August 2021.
“On a month-on-month basis, the Headline inflation rate in August 2022 was 1.77%, this was 0.05% lower than the rate recorded in July 2022 (1.82%). This means that in August 2022 the headline inflation rate (month-on-month basis) declined by 0.05%.
“The percentage change in the average CPI for the twelve months period ending August 2022 over the average of the CPI for the previous twelve months period was 17.07%, showing a 0.47% increase compared to 16.60% recorded in August 2021.
“The Increases were recorded in all COICOP divisions that yielded the Headline index”.
NBS gave insights into the likely factors responsible for the decline in the monthly inflation rate (Month-on month basis), including a decline in the current month’s food index relative to the reference month index which is due to harvest season and relative stability in transportation cost due to availability of fuel.
According to the Bureau, likely factors responsible for the increase in the annual inflation rate (Year-on-Year basis), also include disruption in the supply of food products, increase in import cost due to the persistent currency depreciation and a general increase in the cost of production.
“On a year-on-year basis, in August 2022, the urban inflation rate was 20.95%, this was 3.36% higher compared to 17.59% recorded in August 2021. On a month -on monthly basis, the urban inflation rate was 1.79% in August 2022, this was a 0.03% decline compared to July 2022 (1.82%). The corresponding twelve-month average for the urban inflation rate was 17.59% in August 2022. This was 0.4% higher compared to 17.19% reported in August 2021.
“The rural inflation rate in August 2022 was 20.12% on a year-on-year basis; this was 3.69% higher compared to 16.43% recorded in August 2021. On a month-on-month basis, the rural inflation rate in August 2022 was 1.75%, down by 0.06% compared to July 2022 (1.81%). The corresponding twelve-month average for the rural inflation rate in August 2022 was 16.58%. This was 0.55% higher compared to 16.03% recorded in August 2021.
“The food inflation rate in August 2022 was 23.12% on a year-on-year basis; which was 2.82% higher compared to the rate recorded in August 2021 (20.30%). This rise in food inflation was caused by increases in prices of Bread and cereals, Food products eg: Potatoes, yam and other tubers, fish, meat, oil and fat.
“On a month-on-month basis, the food inflation rate in August was 1.98%, this was a 0.07% decline compared to the rate recorded in July 2022 (2.04%). This decline is attributed to reduction in prices of some food items like Tubers, Garri, local rice and Vegetables. The average annual rate of food inflation for the twelve-month period ending August 2022 over the previous twelve-month average was 19.02%, which was a 1.48% decline from the average annual rate of change recorded in August 2021 (20.50%).
“The “All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 17.20% in August 2022 on a year-on-year basis; up by 3.79% when compared to 13.41% recorded in August 2021.
“On a month-on-month basis, the core inflation rate was 1.59% in August 2022. This was down by 0.17% when compared to 1.75% recorded in July 2022.
“The highest increases were recorded in prices of Gas, Liquid fuel, Solid fuel, Passenger transport by road, Passenger transport by Air, fuel and lubricants for personal transport equipment, Cleaning, Repair and Hire of clothing.
“The average 12-month annual inflation rate was 14.60% for the twelve-month period ending August 2022; this was 2.31% higher than the 12.29% recorded in August 2021” the report stated.
