In August 2023, Nigeria’s inflation rate surged to 25.80% from 24.08% in July, according to the National Bureau of Statistics. The year-on-year comparison indicated a 5.27% increase from August 2022, which recorded a rate of 20.52%. Food inflation also rose to 29.34% year-on-year, a 6.22% increase from August 2022. The rise in food prices was attributed to increases in oil and fat, bread and cereals, fish, fruit, meat, vegetables, and other food items. Analysts predict continued pressure on non-food inflation due to ongoing factors, particularly currency dynamics.
Key Points:
- Nigeria’s inflation rate climbed to 25.80% in August 2023 from 24.08% in July, marking a 1.72% increase.
- Year-on-year, the inflation rate in August 2023 was 5.27% higher than in August 2022.
- Food inflation rose to 29.34% year-on-year, driven by increased prices of various food items.
- On a month-on-month basis, food inflation in August 2023 was 3.87%, indicating a 0.41% increase from July 2023.
- The average annual rate of food inflation for the 12 months ending August 2023 was 25.01%, up from 19.02% in August 2022.
Analysis: The surge in Nigeria’s inflation rate, particularly in food prices, highlights the ongoing economic challenges facing the country. Factors such as increased prices of essential food items, including oil, bread, fish, and vegetables, have contributed to this rise. Analysts predict continued pressure on non-food inflation, driven by factors like currency dynamics. The year-on-year comparison underscores the need for effective measures to stabilize prices and address economic uncertainties in Nigeria.
