The National Bureau of Statistics (NBS) has declared that inflation rose by 13.22 in August, making it the highest in 28 months.
NBS, in its report on Consumer Price Index (CPI), released on Tuesday, September 15, showed that the inflation rate is due to the spike in the prices of basic food items in recent times.
The report stated that the inflation rate for the month rose by 0.40 percentage point, from 12.82 per cent attained in July.
Read the detail of the report below:
The consumer price index, (CPI) which measures inflation increased by 13.22 percent (year-on-year) in August 2020. This is 0.40 percent points higher than the rate recorded in July 2020 (12.82 percent).
On a month-on-month basis, the Headline index increased by 1.34 percent in August 2020. This is 0.09 percent higher than the rate recorded in July 2020 (1.25 percent).
The percentage change in the average composite CPI for the twelve months period ending August 2020 over the average of the CPI for the previous twelve months period was 12.23 percent, representing a 0.18 percent point rise from 12.05 percent recorded in July 2020.
The urban inflation rate increased by 13.83 percent (year-on-year) in August 2020 from 13.40 percent recorded in July 2020, while the rural inflation rate increased by 12.65 percent in August 2020 from 12.28 percent in July 2020.
Increases were recorded in all COICOP divisions that yielded the Headline index.
The composite food index rose by 16.00 percent in August 2020 compared to 15.48 percent in July 2020.
On a month-on-month basis, the food sub-index increased by 1.67 percent in August 2020, up by 0.15 percent points from 1.52 percent recorded in July 2020.
This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam, and other tubers, Meat, Fish, Fruits, Oils and fats, and Vegetables.
The average annual rate of change of the Food sub-index for the twelve-month period ending August 2020 over the previous the twelve-month average was 14.87 percent, representing a 0.24 percent points the increase from the average annual rate of change recorded in July 2020 (14.63 percent).
All items less farm produce:
The ”All items less farm produce” (or Core inflation), which excludes the prices of volatile agricultural produce stood at 10.52 percent in August 2020, up by 0.42 percent when compared with 10.10 percent recorded in July 2020.
On a month-on-month basis, the core sub-index increased by 1.05 percent in August 2020. This was up by 0.30 percent when compared with 0.75 percent recorded in July 2020.
The highest increases were recorded in prices of Passenger transport by air, Hospital services, medical services, Pharmaceutical products, Maintenance, and repair of personal transport equipment, Vehicle spare parts, Motor cars, Passenger transport by road, Miscellaneous services relating to the dwelling,
Repair of furniture and Paramedical services. The average 12-month annual rate of change of the index was 9.64 percent for the twelve-month period ending August 2020. This is 0.16 percent points higher than 9.48 percent recorded in July 2020.
In analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states.
Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.
All items inflation:
In August 2020, all items index on year on year the basis was highest in Kogi (17.29%), Bauchi (15.77%), and Ebonyi and Yobe (14.71%), while Lagos (11.45%), Kwara (11.22%), and Abuja (11.17%) recorded the slowest rise in headline Year on Year inflation
On month on month basis, however, all items inflation was highest in Ondo (2.20%), Ogun (2.07%) and Abia (1.87%), while Plateau (0.72%), Zamfara (0.60%) and Sokoto (0.54%) recorded the slowest rise in headline month on month inflation.
In August 2020, food inflation on a year on year basis was highest in Kogi (22.03%), Kwara (19.11%) and Edo (17.95%), while Gombe (14.33%), Kano (13.99%) and Bauchi (13.42%) recorded the slowest rise.
On month on month basis, however, food inflation was highest in Ogun (3.27%), Lagos (3.13%), and Abia (2.81%), while Plateau (0.67%), Zamfara (0.24%) and Sokoto (0.13%), recorded the slowest rise.