Inflation Rate Climbs To 26.72% In September -NBS

In September 2023, the headline inflation rate increased to 26.72% relative to the August 2023 headline inflation rate which was 25.80%, the National Bureau of Statistics has said.  In it’s CPI and Inflation Report for September, released Monday in Abuja, the bureau said the rates showed a showed an increase of 0.92% points when compared to the August 2023 headline inflation rate.  On a year-on-year basis, the headline inflation rate was 5.94% points higher compared to the rate recorded in September 2022, which was 20.77%. This shows that the headline inflation rate (year-on-year basis) increased in September 2023 when compared to the same month in the preceding year (i.e., September 2022). Furthermore, on a month-on-month basis, the headline inflation rate in September 2023 was 2.10%, which was 1.08% lower than the rate recorded in August 2023 (3.18%).  This means that in September 2023, the rate of increase in the average price level was less than the rate of increase in the average price level in August 2023. 

Diminishing Naira Will Push Inflation To 18-Year High Of 27.67% – Rewane

Chief executive Officer of Financial Derivatives Company Limited, Bismarck Rewane has projected that inflation is set to rise to 27.57 per cent due to a weak naira. This is the ninth consecutive rise in inflation rates.Analysts say it would represent the highest figure ever reached since September 2005.“Nigeria’s headline inflation is expected to increase again in September, rising to 27.57 per cent from 25.80 per cent in August. “Price increases were most notable in the food basket, predominantly commodities with high import content such as flour, semovita, noodles, and sugar. “With prices rising, fingers are pointing towards the exchange rate as the major inflation culprit. The naira crossed the psychological threshold of N1,000/$ in the parallel market, pushing up imported inflation despite the relative stability in global food prices. The Food and Agricultural Organisation of the United Nations (FAO) food price index was relatively flat at 121.5 points (pts) in September.”, said Rewane. Apart from the weak naira, drivers of inflation includes higher logistics costs and money supply growth (36 per cent year-on-year (y-o-y), saying the price of diesel, the major fuel used by trucks for logistics and distribution purposes, surged to a record high of N1,030/litre during the period. “Notably, month-on-month inflation, which is a more current measure of price movement, is expected to decline marginally to 2.78 per cent from 3.18 per cent in August, largely due to the harvest season impact. This suggests that inflation is likely to reach an inflection point and could begin to taper in the first quarter of 2024.

Just In: Nigeria’s Inflation Soars To 25.80% In August 2023 –NBS

Nigeria’s headline inflation rate jumped to 25.80 per cent in August 2023, relative to the July 2023 headline inflation rate which was 24.08 per cent, the National Bureau of Statistics (NBS) has said. According to the NBS in its Consumer Price Index (CPI) report for August 2023, there is a 1.72 percentage point increase when compared to the July 2023 headline inflation rate. On a year-on-year basis, the headline inflation rate was 5.27% points higher compared to the rate recorded in August 2022, which was 20.52%. The NBS noted that food inflation for August rose to 29.34 per cent in August 2023, representing a 2.35 percentage point increase from 26.98 per cent recorded in the previous month. On a year-on-year basis, which was 6.22% points higher compared to the rate recorded in August 2022 (23.12%). According to the Statistics bureau, the increase was driven by increase in prices of Oil and fat, Bread and cereals, Fish, Fruit, Meat, Vegetables and Potatoes, Yam and other Tubers, Vegetable, Milk, Cheese and Eggs. “On a month-on-month basis, the Food inflation rate in August 2023 was 3.87%, this was 0.41% points higher compared to the rate recorded in July 2023 (3.45%). “The rise in Food inflation on a month-on-month basis was caused by increases in prices of Bread and cereals, Potatoes, Yam and other tubers, Fish, Oil and Fat, Coffee, Tea, and Cocoa. “The average annual rate of food inflation for the twelve months ending August 2023 over the previous twelve-month average was 25.01%, which was 5.99% points increase from the average annual rate of change recorded in August 2022 (19.02%),” the bureau said. The NBS further said that in August 2023, food inflation on a year-on-year basis was highest in Kogi (38.84%), Lagos (36.04%), and Kwara (35.33%), while Sokoto (20.09%), Nasarawa (24.35%) and Jigawa (24.53%) recorded the slowest rise in food inflation on a year-on-year basis. “On a month-on-month basis, however, August 2023 food inflation was highest in Rivers (7.12%), Kwara (5.89%), and Kogi (5.80%), while Sokoto (0.50%), Abuja (1.30%) and Niger (1.40%) recorded the slowest rise in Food inflation on a month-on-month basis,” the report revealed.

Nigeria’s inflation shoots to 24.08% in July -NBS

Nigeria’s headline inflation rate for the month of July 2023 increased to 24.08% from 22.79% recorded in June 2023. This was contained in the Consumer Price Index report by the National Bureau of Statistics.  According to the NBS, the figure represents a 1.29% percentage points rise from June headline inflation while on year-on-year basis, the inflation rate was 4.44 percentage points higher compared to the rate recorded in July 2022, which was 19.64%. The report noted that the increase was attributed to an increase in contributions of some items in the basket of goods and services at the divisional level. “These increases were witnessed in Food & Non-Alcoholic Beverages (12.47%), Housing, Water, Electricity, Gas & Other Fuel (4.03%), Clothing & Footwear (1.84%), Transport (1.57%), Furnishings & Household Equipment & Maintenance (1.21%), Education (0.95%) and Health (0.72%). “Others are Miscellaneous Goods & Services (0.40%), Restaurants & Hotels (0.29%), Alcoholic Beverages, Tobacco & Kola (0.26%), Recreation & Culture (0.17%) and Communication (0.16%). “On a month-on-month basis, the Headline inflation rate in July 2023 rose to 2.89%, this shows an average increase of 0.76 percentage points on the general price level relative to June 2023,” it said. The report also noted that the percentage change in the average Consumer Price Index for the twelve months ending July 2023 over the average of the CPI for the previous twelve months was 21.92%, showing a 5.17% increase compared to the 16.75% recorded in July 2022. “The food component sub-index for July 2023 increased by 26.98% on a year-on-year basis; this was 4.97% points higher relative to the rate recorded in June 2022 (22.02%). “The rise in Food index on a year-on-year basis was caused by increases in prices of Oil and fat, Bread and cereals, Fish, Potatoes, Yam and other tubers, Fruits, Meat, Vegetable, Milk, Cheese, and Eggs,” the report added. The further observed that, the Food inflation rate on a month-on-month basis, in July 2023 rose to 3.45%, this was 1.06% points higher compared to the rate recorded in June 2023 (2.40%). “The average annual rate of Food inflation for the twelve months ending July 2023 over the previous twelve-month average was 24.46%, indicating an increase of 5.71% points from (18.75%) recorded in July 2022. “Core inflation, which is All items less farm produce, that is excluding the prices of volatile agricultural produce, stood at 20.47% in July 2023 on a year-on-year basis; it rose by 4.41% when compared to the 16.06% recorded in July 2022. “This was driven by an increase in prices of Passenger Transport by Air, Passenger Transport by Road, Vehicle Spare parts, Medical Services, Maintenance and repair of personal transport equipment etc. On a month-on-month basis, the Core inflation rate stood at 2.11% in July 2023. “This shows an increase of 0.34% when compared to the 1.77% recorded in June 2023. The average annual core inflation rate for the twelve-month ending July 2023 over the previous twelve-month average stood at 18.84%; this was 4.31% points higher than the 14.53% recorded in July 2022. “The inflation rate in July 2023 for Urban consumers was 25.83% on a year-on-year basis. This indicated an increase of 5.74% points higher compared to the 20.09% recorded in July 2022,” it said. Also, the Urban month-on-month inflation rate rose to 3.05% in July 2023, which was 0.75% points higher compared to June 2023 (2.31%). The report said the twelve-month average for the Urban inflation rate ending July 2023 over the corresponding twelve-month was 22.87%. This was 5.59% points higher compared to the 17.29% reported in July 2022. “Similarly, the inflation rate for rural consumers in the month of July 2023 was 22.49% on a year-on-year basis; this was 3.26% points higher compared to the 19.22% recorded in July 2022. “On a month-on-month basis, the Rural inflation rate in July 2023 was 2.74%, up by 0.78% points compared to June 2023 (1.96%). “The twelve months average for the Rural inflation rate ending July 2023 over the corresponding twelve-month was 21.04%. This was 4.79% points higher compared to the 16.25% recorded in July 2022. “The analyses of the states show that the all-item index for July 2023, on a year-on-year basis was highest in Kogi (28.45%), Lagos (27.30%), Ondo (26.83%); while the states with slowest rise in headline inflation on a year-on-year basis were Borno (20.71%), Jigawa (20.85%) and Sokoto (20.92%) during the month. “On a month-on-month basis, July 2023 headline inflation recorded the highest increase in Kogi (4.99%), Abia (4.12%), and Akwa Ibom (4.07%). On the other hand, Jigawa (0.16%), Taraba (1.09%) and Yobe (1.10%) recorded the slowest rise on month-on-month inflation. “State-level analyses of the food index in July 2023, on a year-on-year basis, showed the highest increases in Kogi (34.53%), Lagos (32.52%) and Bayelsa (31.31%). While Jigawa (20.90%), Sokoto (21.63%) and Kebbi (22.45%) recorded the slowest rise in Food inflation during the month. Ends