If the report is be believed, and the tempo is sustained, then inflation including high cost of food items may be going down to the comfort of Nigerians. This follows the latest report by the National Bureau of Statistics (NBS) released today, which indicates that the August 2024 headline inflation eased to 32.15 per cent, the second consecutive fall in fifteen months. This shows that it fell marginally by 1.25 percent on a month-on-month basis against the July 2024 inflation which rose by 0.24 percent to a record of 33.40 percent.
Subsequently, on a year-on-year basis, the Consumer Price Index (CPI) report recorded a surge of 6.35 per cent to the 25.80 per cent recorded in August 2023. This means that in August 2024, 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 statistics hub attributed the increase to the high cost of food and non-alcoholic beverages.
During the review period, the NBS said on a divisional level, food and non-alcoholic beverages contributed 16.35 per cent to inflation, housing, water, electricity, gas and other fuel contributed 5.28 per cent while clothing and footwear accounted for 2.46 per cent, among others.
The NBS said, “In August 2024, the headline inflation rate further eased to 32.15 percent relative to the July 2024 headline inflation rate of 33.40 per cent.
“Looking at the movement, the August 2024 headline inflation
rate showed a decrease of 1.25 per cent points when compared to the July 2024 headline inflation rate.
“However, on a year-on-year basis, the headline inflation rate was 6.35 per cent points higher compared to the 25.80 per cent rate recorded in August 2023.”
Further breakdown of the report showed the food inflation rate in August 2024 was 37.52 per cent and rose by 8.18 per cent higher on a year-on-year basis,
compared to the 29.34 per cent rate recorded in August 2023.
The rise in Food inflation on a year-on-year basis was caused by increases in prices of Bread, Maize, Grains, Guinea Corn, Yam, Irish Potatoes, Water Yam, Cassava Tuber, Palm Oil, Vegetable, amongst others. On a month-on-month basis, the food inflation rate in August 2024 stood at 39.43 percent, a marginal decrease compared to 39.53 percent rate recorded in July 2024.
The fall can be attributed to the decline in the rate of increase in the average prices of Tobacco, Tea, Cocao, Coffee, Groundnut Oil, Milk, Yam, Irish Potatoes, Water Yam, Cassava Tuber, Palm Oil, Vegetable amongst others.
The case was not different in the urban areas where the inflation rate fell to 34.58 percent. which was 6.89 percent points higher when compared to the 27.69 percent recorded in July 2023.
On a month-on-month basis, the Urban inflation rate was 0.07 per cent points lower compared to July 2024 2.46 per cent. The rural inflation rate in July 2024 was 29.95 per cent yearly. This was 5.85 per cent higher than the 24.10 per cent recorded in the preceding year. On a month-on-month basis, the rural inflation rate was down by 0.04 per cent points compared to the 2.10 per cent rate of increase in June 2024.ca
