Nigeria’s Inflation Rate drops to 17.01% (August, 2021)- NBS
Latest report released by the National Bureau of Statistics (NBS) shows that Nigeria’s inflation rate dropped by 0.37 percent points to 17.01 percent in August 2021.
According to the report, the consumer price index (CPI), which measures inflation increased by 17.01 percent (year-on-year) in August 2021, being 0.37 percent points lower than the rate recorded in July 2021 (17.38) percent. (The CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living).
Urban/Rural Index
On a month-on-month basis, the urban index rose by 1.06 percent in August 2021, up by 0.08 the rate recorded in July 2021 (0.98), while the rural index also rose by 0.99 percent in August 2021, up by 0.12 the rate that was recorded in July 2021 (0.87) percent.
The urban inflation rate increased by 17.59 percent (year-on-year) in August 2021 from 18.01 percent recorded in July 2021, while the rural inflation rate increased by 16.43 percent in August 2021 from 16.75 percent in July 2021.
The corresponding twelve-month year-on-year average percentage change for the urban index was 17.19 percent in August 2021. This is higher than 16.89 percent reported in July 2021, while the corresponding rural inflation rate in August 2021 was 16.03 percent compared to 15.73 percent recorded in July 2021.
Food Inflation
In August 2021, food inflation on a year on year basis was highest in Kogi State (28.76%), Oyo State (23.69%) and Gombe State(22.37%), while River State (17.69%), Edo State (17.26%) and Bauchi State (17.24%) recorded the slowest rise in year-on-year food inflation.
On month-on-month basis, however, August 2021 food inflation was highest in Ekiti State (2.70%), Abuja (2.62%) and Akwa Ibom State (2.50%), while Lagos State (0.04%) and Edo State (0.08%) recorded the slowest rise with Kaduna State recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).
Food Index
The composite food index rose by 20.30 percent in August 2021 compared to 21.03 percent in July 2021. This rise in the food index was caused by increases in prices of bread and cereals, milk, cheese and egg, oils and fats, potatoes, yam and other tuber, food product, meat and coffee, tea and cocoa.
On month-on-month basis, the food sub-index increased by 1.06 percent in August 2021, up by 0.20 percent points from 0.86 percent recorded in July 2021.
The average annual rate of change of the Food sub-index for the twelve-month period ending August 2021 over the previous twelve-month average was 20.50 percent, 0.34 percent points from the average annual rate of change recorded in July 2021 (20.16) percent.
Core Inflation
The Core inflation, which excludes the prices of volatile agricultural produce, stood at 13.41 percent in August 2021, down by 0.31 percent when compared with 13.72 percent recorded in July 2021.
On month-on-month basis, the core sub-index increased by 0.77 percent in August 2021. This was down by 0.54 percent when compared with 1.31 percent recorded in July 2021.
The average 12-month annual rate of change of the index was 12.29 percent for the twelve-month period ending August 2021; this is 0.24 percent points higher than 12.05 percent recorded in July 2021.
The highest increases were recorded in prices of shoes and other footwear, household textile, motor cars, garments, game of chance, major household appliances whether electric or not, hospital services, catering services, appliances, articles and product for personal care and clothing materials, other articles of clothing and clothing accessories.
Amaka E. Nliam/NBS
