BREAKING: Inflation drops to 32.15%

In August 2024, the headline inflation rate decreased to 32.15% from 33.40% in July 2024, according to the National Bureau of Statistics (NBS).

This implies that the August headline inflation rate showed a drop of 1.25% points when compared to the July headline inflation rate.

On the other hand, the agency revealed that the headline inflation rate was 6.35% points higher in August 2023 (compared to 25.80%) year over year. When comparing August 2024 to the same month the previous year, this indicates an increase.

On a month -on -month basis, NBS said the headline inflation rate in August was 2.22%, which was 0.06% lower than the rate recorded in the previous month (2.28%).

This means that in August, the rate of increase in the average price level is lower than the rate of increase in the average price level in July 2024.

“The percentage change in the average CPI for the 12 months period ending August 2024 over the average of the CPI for the previous twelve months period was 31.26%, showing 8.88% increase compared to 22.38% recorded in August 2023.”

Urban Inflation

On a year-on-year basis, August 2024 Urban inflation rate was 34.58%, this was 6.89% points higher compared to the 27.69% recorded in August 2023.

On a month-on-month basis, the urban inflation rate was 2.39% in August 2024, this was 0.07% points lower compared to July 2024 (2.46%).

The corresponding 12-month average for the Urban inflation rate was 33.44% in August 2024. This was 9.98% points higher compared to the 23.46% reported in August 2023.

Rural inflation

The rural inflation rate in August 2024 was 29.95% on a year-on-year basis; this was 5.85% higher compared to the 24.10% recorded in August 2023.

On a month-on-month basis, the rural inflation rate in August 2024 was 2.06%, down by 0.04% points compared to July 2024 (2.10%).

The corresponding 12-month average for the rural inflation rate in August 2024 was 29.32%.
This was 7.93% higher compared to the 21.39% recorded in August 2023.

The food inflation rate in August 2024 was 37.52% on a year-on-year basis, which was 8.18% points higher compared to the rate recorded in August 2023 (29.34%).

The rise in food inflation on a year on year basis was caused by increases in prices of the following items, bread, maize grains, guinea corn, etc (bread and cereals class), yam, Irish potatoes, water yam, cassava tuber, etc (potatoes, yam and other tubers class), palm oil, vegetable, etc (oil and fats class) and ovaltine, milo, Lipton, etc (coffee, tea and cocoa class).

On a month-on-month basis, the Food inflation rate in August 2024 was 2.37% which shows a 0.10% decrease compared to the rate recorded in July 2024 (2.47%).

The fall was attributed to the decline in the rate of increase in the average prices of tobacco, tea, coco, coffee, groundnut oil, milk, yam, Irish potatoes, water yam, cassava tuber, palm oil, vegetable etc.

The average annual rate of food inflation for the 12 months ending August 2024 over the previous twelve-month average was 36.99%, which was 11.98% points increase from the average annual rate of change recorded in August 2023 (25.01%).

Meanwhile, on state by state basis, all items inflation rate in August on a year-on-year basis was highest in Bauchi (46.46%), Kebbi (37.51%) and Jigawa (37.43%), while Benue (25.13%), Delta (26.86%) and Imo (28.05%) recorded the slowest rise in Headline inflation on a year-on-year basis.