Nigeria’s Inflation Rises 11.23% in August 2018

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September 14, 2018

By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s inflation rate has reversed its eighteenth consecutive month of decline (which started in January 2017). Headline inflation printed 11.23 percent year-on-year (y/y) in August, up from 11.14 percent y/y in July, according to the National Bureau of Statistics (NBS) latest report.

NBS says this is 0.09 percent points higher than the rate recorded in July 2018 (11.14) percent and represents the first year on year rise in headline inflation following eighteenth consecutive disinflation in headline inflation.

According to the report, increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yield the Headline Index

“On month-on-month basis, the Headline index increased by 1.05 percent in August 2018, down by 0.08 percent points from the rate recorded in July 2018 (1.13) percent),” the nation’s statistics office said.

NBS says the percentage change in the average composite CPI for the twelve months period ending August 2018 over the average of the CPI for the previous twelve months period was 13.55 percent, showing 0.4 percent point from 13.95 percent recorded in July 2018.

The NBS reports the urban inflation rate increased by 11.67 percent (year-on-year) in August 2018 from 11.66 percent recorded in July 2018, while the rural inflation rate increased by 10.84 percent in August 2018 from 10.83 percent in July 2018. 

On a month-on-month basis, the urban index rose by 1.00 percent in August 2018, down by 0.23 from 1.23 percent recorded in July, while the rural index also rose by 0.96 percent in August 2018, down by 0.22 percent from the rate recorded in July 2018 (1.18) percent,” the report added.

The nation’s statistics office said corresponding twelve-month year-on-year average percentage change for the urban index is 13.95 percent in August 2018. This is less than 14.33 percent reported in July 2018, while the corresponding rural inflation rate in August 2018 is 13.21 percent compared to 13.64 percent recorded in July 2018. 

The report affirmed that the composite food index rose by 13.16 percent in August 2018 compared to 12.85 percent in July 2018. 

Also, on month-on-month basis, the food sub-index increased by 1.42 percent in August 2018, up by 0.02 percent points from 1.40 percent recorded in July. 

While the average annual rate of change of the Food sub-index for the twelve-month period ending August 2018 over the previous twelve-month average was 16.50 percent, 0.6 percent points from the average annual rate of change recorded in July (17.10) percent. 

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