Inflation drops by 0.37 per cent for second consecutive month: NBS

The National Bureau of Statistics (NBS) has said the rate of inflation slowed by 0.37 per cent to 17.01 per cent Year-on-Year (YoY) in August from 17.38 per cent recorded in July.

The bureau said this in the ‘Consumer Price Index (CPI), August 2021’ report released on Wednesday in Abuja.

The inflation rate has been on a steady decline for five consecutive months.

This is as the inflation rate in June stood at 17.75 per cent, with that of May at 17.93 per cent from 18.12 per cent recorded in April, while 18.17 per cent was recorded in March.

It also said that increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the Headline Index.

“On a month-on-month basis, the headline index increased by 1.02 per cent in August, this is 0.09 per cent rate higher than the 0.93 per cent recorded in July.

“The percentage change in the average composite CPI for the 12 months period ending August 2021 over the average of the CPI for the previous 12 months period was 16.60 per cent, showing 0.30 per cent increase from 16.30 per cent recorded in July.”

The NBS said that the urban inflation rate increased by 17.59 per cent YoY in August from 18.01 per cent recorded in July, while the rural inflation rate increased by 16.43 per cent in August from 16.75 per cent in July.

According to the report, on a month-on-month basis, the urban index rose by 1.06 per cent in August, up by 0.08 per cent from the 0.98 per cent recorded in July.

It added that the rural index also rose by 0.99 per cent in August, up by 0.12 per cent than the 0.87 per cent that was recorded in July.

It also said that the corresponding 12-month year-on-year average percentage change for the urban index stood at 17.19 per cent in the month under review.

This, it said, was higher than 16.89 per cent reported in July, while the corresponding rural inflation rate in August was 16.03 per cent compared to 15.73 per cent recorded in July.

The NBS said that the composite food index rose by 20.30 per cent in August compared to 21.03 per cent in July.

This rise, it said, was caused by increases in prices of bread and cereals, milk, cheese and egg, oils and fats, potatoes, yam and other tubers, food products, meat and coffee, tea and cocoa.

It, however, said that on a month-on-month basis, the food sub-index increased by 1.06 per cent in August, up by 0.20 per cent points from 0.86 per cent recorded in July.

Meanwhile, ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.41 per cent in August, down by 0.31 per cent when compared with 13.72 per cent recorded in July.

The NBS said that on a month-on-month basis, the core sub-index increased by 0.77 per cent in August, down by 0.54 per cent when compared with 1.31 per cent recorded in July.

“The highest increases were recorded in prices of shoes and other footwear, household textile, motor cars, garments, the game of chance, major household appliances whether electric or not and hospital services.

“Others are catering services, appliances, articles and product for personal care and clothing materials, other articles of clothing and clothing accessories.”

The report said that in the month under review, all items inflation on YoY basis was highest in Kogi at 23.40 per cent, Bauchi 21.56 per cent and Oyo 20.32 per cent.

Meanwhile, Bayelsa at 15.04 per cent, Rivers 14.73 per cent and Kwara at 14.64 per cent recorded the slowest rise in headline YoY inflation.

It said that on a month on month basis, however, in August all items inflation was highest in Cross River at 2.65 per cent, Zamfara 2.05 per cent and Akwa Ibom 2.01 per cent, while Kaduna 0.20 per cent and Rivers at 0.14 per cent recorded the slowest rise

It, however, said that Ebonyi recorded price deflation or negative inflation which is a general decrease in the prices of goods and services or a negative inflation rate.

For food inflation on a YoY basis for August, it was highest in Kogi at 28.76 per cent, Oyo 23.69 per cent and Gombe 22.37 per cent, while Rivers at 17.69 per cent, Edo 17.26 per cent and Bauchi at 17.24 per cent recorded the slowest rise in YoY food inflation.

“On month on month basis, however, August food inflation was highest in Ekiti at 2.70 per cent, Abuja 2.62 per cent and Akwa Ibom 2.50 per cent, while Lagos at 0.04 per cent and Edo at 0.08 per cent recorded the slowest rise.

“Kaduna recorded price deflation or negative inflation”, it said.