By Chioma Iruke
Nigeria’s inflation rate dropped by 17.01 percent year-on-year in August from a previous rate of 17.38 percent in July, the country’s National Bureau of Statistics (NBS) has said.
The NBS said the August figure is 0.37 percent points lower than the rate recorded in July 2021 (17.38) percent.
According to NBS, increases were recorded in all Classifications of Individual Consumption According to Purpose (COICOP) divisions that yielded the headline index.
‘‘On a month-on-month basis, the urban index rose by 1.06 per cent in August 2021, up by 0.08 the rate recorded in July 2021 (0.98), while the rural index also rose by 0.99 per cent in August 2021, up by 0.12 the rate that was recorded in July 2021 (0.87) per cent.
“The urban inflation rate increased by 17.59 per cent (year-on-year) in August 2021 from 18.01 per cent recorded in July 2021, while the rural inflation rate increased by 16.43 per cent in August 2021 from 16.75 per cent in July 2021.
“The corresponding twelve-month year-on-year average percentage change for the urban index is 17.19 per cent in August 2021. This is higher than 16.89 per cent reported in July 2021, while the corresponding rural inflation rate in August 2021 is 16.03 per cent compared to 15.73 per cent recorded in July 2021.
“The percentage change in the average composite CPI for the twelve months period ending August 2021 over the average of the CPI for the previous twelve months period was 16.60 per cent, showing 0.30 per cent point from 16.30 per cent recorded in July 2021,” the statement, noted.
The recent drop in five consecutive months saw the composite food index, rise by 20.30 per cent in August 2021 compared to 21.03 per cent 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 per cent in August 2021, up by 0.20 per cent points from 0.86 per cent 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 per cent, 0.34 per cent points from the average annual rate of change recorded in July 2021 (20.16) percent,” the statement indicated.