Nigeria’s headline inflation rate increased to 25.80% in August and 24.08% in July in the latest report by the official state data source, the National Bureau of Statistics (NBS).
The August 2023 headline inflation rate shows an increase of 1.72% points when compared to the July 2023 headline inflation rate.
The headline inflation rate was 5.27% points higher on an annual basis than the rate, which was 20.52% in August 2022. This demonstrates that when compared to the same month the year before, the headline inflation rate rose in August 2023. (i.e., August 2022).
The Food inflation rate spiked to 29.34%, up 2.35% points from the previous month’s reading of 26.98% and 6.22% points from the reading of 23.12% for the same time in 2022.
According to the NBS, price increases in oil and fat, bread and cereals, fish, fruit, meat, vegetables, and potatoes, as well as yam and other tubers, vegetables, milk, cheese, and eggs, are to blame for the rise in food inflation on an annual basis.
Food inflation is likely to continue on an upward trend as the year ends, based on higher demands for food supplies for end-of-year celebrations.
At the sub-national level, Kogi, Lagos, and Rivers states led the chart with 31.50%, 29.17%, and 29.06%, respectively, for the annual rate of inflation for all goods in August 2023, while Sokoto (20.91%), Borno (21.77%), and Nasarawa (22.25%) had the lowest annualised rate of inflation for headline items.
The three states with the biggest annual increases in food prices were Kogi (38.84%), Lagos (36.04%), and Kwara (35.33%), whereas the three states with the slowest annual increases in food prices were Sokoto (20.09%), Nasarawa (24.35%), and Jigawa (24.53%).
The sharp rise in inflation rates has been linked to the depreciation of the official exchange rate and the effects of the elimination of petrol subsidies on consumer costs.
While the two policies have been lauded by economists and multilateral bodies like the International Monetary Fund (IMF) and the World Bank, their immediate effects on Nigerians remain brutal, as evident in the inflation figures.