- Nigeria’s headline inflation reduced by 1.25 per cent to 32.15 per cent in August
- Food inflation also eased to 37.52 per cent from the 39.53 per cent recorded in July 2024
- Though the rates are lower compared to the first half of the year, they are higher than the 2023 figures
The headline inflation rate in Nigeria has further reduced to 32.15 per cent in August 2024, representing a 1.25 percent decrease compared to the 33.40 per cent recorded in July 2024.
This was disclosed by the National Bureau of Statistics (NBS) in its inflation report released on Monday, September 16.
It said, “In August 2024, the headline inflation rate further eased to 32.15 per cent relative to the July 2024 headline inflation rate of 33.40 per cent.
“Looking at the movement, the August 2024 headline inflation rate showed a decrease of 1.25 per cent points compared to the July 2024 headline inflation rate.”
Rate eases but is still higher than the 2023 figures
Though the inflation rate has slowed since July 2024, the figures are still higher than those of 2023.
Recall that inflation kept soaring, especially since it surpassed a 17-year high in July 2022. It reached a crescendo in May 2024 when the rate reached a 28-year high.
On a year-on-year basis, the headline inflation rate is 6.35 percentage points higher compared to the 25.80 per cent recorded in August 2023.
On a month-on-month basis, the headline inflation rate in August 2024 is 2.22 per cent, which is 0.06 per cent lower than the 2.28 per cent recorded in July 2024.
The rate of increase in the average price level is lower in August 2024 than the rate of increase in the average price level in July 2024.
The NBS said, “The percentage change in the average Consumer Price Index (CPI) for the 12-months period ending August 2024 over the average of the CPI for the previous 12 months period was 31.26 per cent, showing 8.88 per cent increase compared to 22.38 per cent recorded in August 2023.”
Food inflation declines too
The NBS report also shows that the food inflation rate declined to 37.52 per cent, which is 2.01 per cent lower than the 39.53 per cent recorded in July 2024.
On a month-on-month basis, the food inflation rate in August 2024 is 2.37 per cent, representing a 0.10 per cent decrease compared to the 2.47 per cent recorded in July 2024.
The NBS said, “The fall can be attributed to the decline in the rate of increase in the average prices of tobacco, tea, cocoa, coffee, groundnut oil, milk, yam, Irish potatoes, water yam, cassava tuber, palm oil, vegetable, etc.”
On a year-on-year basis, the food inflation rate in August 2024 is 8.18 percentage points higher than the 29.34 percent recorded in August 2023.
According to the NBS, the rise in food inflation is due to increases in the prices of food items.
It said, “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 and other tubers class), palm oil, vegetable, etc (oil and fats class) and Ovaltine, Milo, Lipton, etc (coffee, tea and cocoa class).”
The average annual rate of food inflation for the 12 months ending August 2024 over the previous 12-month average was 36.99 per cent, which is an 11.98 percentage point increase from the average annual rate of change of 25.01 per cent recorded in August 2023.
According to the NBS, the urban inflation rate on a year-on-year basis was 34.58 percent in August 2024, showing 6.89 percentage points higher compared to the 27.69 percent recorded in August 2023.
Urban inflation eases to 2.39 per cent in August from 2.46 per cent in July
Urban inflation also declined in August to 2.39 per cent, indicating 0.07 per cent points lower than the 2.46 per cent recorded in July 2024.
The corresponding 12-month average for the urban inflation rate was 33.44 per cent in August 2024. This is 9.98 percentage points higher compared to the 23.46 per cent reported in August 2023.
The rural inflation rate was 29.95 per cent in August 2024, which is 5.85 per cent higher compared to the 24.10 per cent recorded in August 2023 on a year-on-year basis.
On a month-on-month basis, the rural inflation rate in August 2024 was 2.06 per cent, down by 0.04 per cent points compared to 2.10 per cent in July 2024.
The corresponding 12-month average for the rural inflation rate in August 2024 is 29.32 per cent, which is 7.93 per cent higher compared to the 21.39 per cent recorded in August 2023.
Beyond increasing MPR, how else can CBN tame inflation?
Meanwhile, TheRadar reported that at its 296th Monetary Policy Committee (MPC) meeting, the Central Bank of Nigeria (CBN) increased the Monetary Policy Rate (MPR) by 50 basis points to 26.75 per cent from the May rate of 26.25 per cent to tame inflation.
TheRadar highlighted other ways the apex bank can tackle inflation beyond increasing interest rates, which some Nigerians describe as ‘textbook economics.’
