Nigerian Inflation accelerates by 11.23% in August

People crowd a street at the central business district in Nigeria’s commercial capital Lagos Photo Credit: Akintunde Akinleye/Reuters

The consumer price index, (CPI) which measures inflation increased by 11.23 percent (year-on-year) in August 2018.

This is 0.09 per cent points higher than the rate recorded in July 2018 (11.14) per cent and represents the first year on year rise in headline inflation following eighteenth consecutive disinflation in headline inflation.

National Bureau of Statistics (NBS) announced this on Friday in its monthly CPI report, noting that the composite food index rose by 13.16 percent in August 2018 compared to 12.85 percent in July 2018.

Increases were recorded in all COICOP divisions that yielded the Headline index. On month-on-month basis, the Headline index increased by 1.05 percent in August 2018, down by 0.08 percent points from the rate recorded in July 2018 (1.13) percent).

The percentage change in the average composite CPI for the twelve months period ending August 2018 over the average of the CPI for the previous twelve months period was 13.55 percent, showing 0.4 percent point from 13.95 percent recorded in July 2018.

The urban inflation rate increased by 11.67 percent (year-on-year) in August 2018 from 11.66 percent recorded in July 2018, while the rural inflation rate increased by 10.84 percent in August 2018 from 10.83 percent in July 2018.

On a month-on-month basis, the urban index rose by 1.00 percent in August 2018, down by 0.23 from 1.23 percent recorded in July, while the rural index also rose by 0.96 percent in August 2018, down by 0.22 percent from the rate recorded in July 2018 (1.18) percent.

The corresponding twelve-month year-on-year average percentage change for the urban index is 13.95 percent in August 2018. This is less than 14.33 percent reported in July 2018, while the corresponding rural inflation rate in August 2018 is 13.21 percent compared to 13.64 percent recorded in July 2018.

On month-on-month basis, the food sub-index increased by 1.42 percent in August 2018, up by 0.02 percent points from 1.40 percent recorded in July.

The highest increases were recorded in prices of Domestic services and household services, Dental services, Hospital services, Medical services, Repair of household appliances, Tobacco, Wine and Repair of furniture.

The average 12-month annual rate of change of the index was 11.28 percent for the twelve-month period ending August 2018; this is 0.2 percent points lower than 11.48 percent recorded in July.