Nigeria’s CPI increased by 20.52% YoY in August 2022 from 19.64% in July 2022, according to the National Bureau of Statistics’ (NBS) most current Consumer Price Index (CPI) data. On a MoM basis, the index increased by 1.77% as opposed to the 1.82% growth seen in the prior month.
Subsequently, food inflation increased to 23.12% in August 2022 from 22.02% the previous month. August’s food inflation rate was 1.98% on a monthly basis, which is 0.07% less than the 2.04% figure registered in July. The increase in food inflation, according to the NBS, was brought on by price rises in bread and cereals, food items, potatoes, yams, and other tubers, fish, meat, oil, and fat.
In the meanwhile, the average annual rate of food inflation throughout the twelvemonth period ending in August 2022 was 19.02%, which was a 1.48% decrease from the average annual rate of change reported in August 2021 (20.50%).
Also, on a year-over-year basis, core inflation, which excludes the costs of farm produce, was 17.20% in August 2022, up 0.94% from the 16.26% reported in July 2022. In August 2022, the core inflation rate was 1.59% on a monthly basis. When compared to the 1.75% observed in July 2022, this was down by 0.17%.
Particularly, the prices of gas, liquid fuel, solid fuel, passenger air and ground travel, fuel and lubricants for personal transport equipment, cleaning, repair, and garment rental saw the steepest spikes.
Thinking forwards to September’s data, we expect the global economic downturn, further increases in food and energy prices, and other factors to further exacerbate the inflation rate. As a result, we anticipate a 50bps increase in headline inflation to 30.02% YoY for September 2022.