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Nigeria’s inflation rate jumped to a more than 18-year high on rising energy and food prices, increasing the odds of a rate hike this month.
Consumer prices climbed an annual 25.8% in August, compared with 24.1% the previous month, according to data published on the National Bureau of Statistics (NBS) on Friday.
That’s the highest level since August 2005 and above the 25% median estimate of eight economists in a Bloomberg survey. Prices rose 3.2% month-on-month.
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%.
Accordingly, the figure indicated that the headline inflation rate (year-on-year basis) increased in August 2023 compared to the same month in the preceding year (i.e., August 2022).
The Food inflation rate jumped to 29.34% in August 2023, representing a 2.35% point increase from 26.98% recorded in the previous month and 6.22% points higher than 23.12% recorded in the corresponding period of 2022.
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 average annual rate of Food inflation for the twelve months ending August 2023 over the previous twelve-month average was 25.01%, which was a 5.99% points increase from the average annual rate of change recorded in August 2022 (19.02%).
The rise in Food inflation on a year-on-year basis was caused by increases in prices of Oil and fat, Bread and cereals, Fish, Fruit, Meat, Vegetables and Potatoes, Yam and other Tubers, Vegetable, Milk, Cheese and Eggs.
The “All items less farm produce”, which excludes the prices of volatile agricultural produce stood at 21.15% in August 2023 on a year-on-year basis; up by 0.67% when compared to the 20.47% recorded in July 2023.
On a month-on-month basis, the Core Inflation rate was 2.18% in August 2023. It stood at 2.11% in July 2023, up by 0.07%.
The average twelve-month annual inflation rate was 19.18% for the twelve months ending August 2023; this was 4.38% points higher than the 14.80% recorded in August 2022.
The highest increases were recorded in prices of Passenger Transport by Air, Passenger Transport by Road, Medical Services, Vehicle Spare parts, Maintenance, and repair of personal transport equipment etc.