The National Bureau of Statistics (NBS) reported a decrease in Nigeria’s headline inflation rate for August 2024, attributed primarily to a slower food inflation rate and base effects. The Consumer Price Index (CPI) data revealed that headline inflation fell to 32.15% in August, down from 33.4% in July, marking the second consecutive monthly decline this year.
FOOD INFLATION DETAILS:
- YEAR-ON-YEAR: Food inflation dropped to 37.52% in August from 39.53% in July, due to a decline in prices of various food items including tobacco, tea, cocoa, coffee, groundnut oil, milk, yam, potatoes, cassava, and palm oil.
- MONTH-ON-MONTH: Food inflation eased to 2.37%, a decrease from the 2.47% recorded in July.
ADDITIONAL INSIGHTS:
- HEADLINE INFLATION: The year-on-year increase from August 2023’s rate of 25.8% shows a 6.35 percentage point rise.
- MONTH-ON-MONTH INCREASE: The inflation rate increase from July to August was 0.06 percentage points lower, indicating a slower rate of price level increases.
FUTURE OUTLOOK: Analysts, including those from CardinalStone Research, anticipate renewed inflationary pressure in the coming months, driven by rising fuel prices which may lead to an increase in core inflation. The current drop in food inflation is partly attributed to the harvest season which has alleviated some pressure on food prices.
Overall, while the recent inflation figures indicate some relief, experts caution that ongoing economic conditions and external factors could affect future trends.