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Nigeria: Inflation rate drops to 11.02% in August

The August 2019 Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) indicates that the inflation rate reduced by 0.06 percent to 11.02 percent from 11.08 percent recorded in July in Nigeria.The report released on Tuesday in Abuja said disinflation continued in August 2019 in spite of several pronouncements regarding restrictions on the import of some food items, minimum wage and the recent border closures.

“It is important to note that with respect to the latter, the border was only closed on Aug. 20, 2019 with only 11 days of 31 days for any significant impact to be felt either way on prices,” it said.

The NBS said that the inflation rate was also the average prices for the whole month and not only the price of goods and services in the last few days of the month.

It added that the harvest season and existing weak consumer demand and their natural effect to slow down food and other prices also played a major role in determining the direction of inflation.

“Against this backdrop, in August 2019, all major indices slowed except urban inflation year on year.

“On month-on-month basis, the Headline index increased by 0.99 percent in August. This is 0.02 percent rate lower than the rate recorded in July (1.01) percent,” it said.

According to the NBS, the percentage change in the average composite CPI for the twelve months period ending August over the average of the CPI for the previous twelve months period is 11.27 percent, showing 0.02 percent point from 11.29 percent recorded in July.

It also said that the urban inflation rate increased by 11.48 percent (year-on-year) in August from 11.43 percent recorded in July, while the rural inflation rate increased by 10.61 percent in August from 10.64 percent in July.

“On a month-on-month basis, the urban index rose by 1.04 per cent in August, down by 0.03 from 1.07 percent recorded in July, while the rural index also rose by 0.93 percent in August, down by 0.03 from the rate recorded in July (0.96) percent.

“The corresponding twelve-month year-on-year average percentage change for the urban index is 11.62 percent in August. This is less than 11.64 percent reported in July, while the corresponding rural inflation rate in August is 10.95 percent compared to 10.97 percent recorded in July.”

The report said that composite food index rose by 13.17 percent in August compared to 13.39 percent in July.



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