Inflation fee surged by virtually 100 foundation factors (bps) to twenty.52 per cent in August 2022, in accordance with the report of the Nationwide Bureau of Statistics (NBS) launched on Thursday.
The NBS attributed the rise within the annual inflation fee to a few components. Disruption within the provide of meals merchandise, improve in import price because of the persistent foreign money depreciation and the final improve in the price of manufacturing.
Inflation fee was 19.64 per cent within the earlier month of July.
The buyer value index (CPI) measures the typical change over time within the costs of products and providers consumed by folks for day-to-day dwelling.
NBS acknowledged that the August 2022 inflation fee of 20.52 per cent was 3.52 per cent factors greater in comparison with the speed recorded in August 2021, which was (17.01 per cent).
It mentioned: “This reveals that the headline inflation fee elevated within the month of August 2022 when in comparison with the identical month within the previous yr (i.e. August 2021). That means that in August 2022, the final value degree was 3.52 per cent greater relative to August 2021.
On a month -on-month foundation, the city inflation
fee was 1.79 per cent in August 2022, this was a 0.03 per cent decline in comparison with July 2022 (1.82 per cent).
The corresponding twelve-month common for the city inflation fee was 17.59 per cent in August 2022. This was 0.4% greater in comparison with 17.19 per cent reported in August 2021.
The agricultural inflation fee in August 2022 was 20.12 per cent on a year-on-year foundation. This was 3.69 per cent greater in comparison with 16.43 per cent recorded in August 2021.
On a month-on-month foundation, the agricultural inflation fee in August 2022 was 1.75 per cent, down by 0.06 per cent in comparison with July 2022 (1.81 per cent). The corresponding twelve-month common for the agricultural inflation fee in August 2022 was 16.58 per cent. This was 0.55 per cent greater in comparison with 16.03 per cent recorded in August 2021.
In a chat with Blueprint, Capital Market Professor, Uche Uwaleke, mentioned that the headline inflation didn’t come as a shock as a result of rising international inflation occasioned by the Russia-Ukraine struggle.
“The rise in headline inflation above the psychological threshold of 20% didn’t come as a shock in view of the rising inflation development in lots of economies partly brought on by the Russian Ukrainian battle.
“It’s fascinating to notice that the NBS, in its newest CPI report, supplied a clue as to the key components driving the inflationary stress in Nigeria particularly provide disruptions and rising price of manufacturing,” he mentioned.
Within the report, NBS had mentioned that disruption within the provide of meals merchandise; improve in import price because of the persistent foreign money depreciation and common improve in the price of manufacturing was chargeable for improve within the improve in charges.
Whereas noting that the current CBN coverage tightening has not yielded the specified outcome, Uwaleke mentioned the must give you insurance policies that can increase native meals manufacturing.
“Within the mild of this revelation, what turns into clear is that the current financial coverage tightening stance of the CBN alone might not deal with the problem.
The federal government must formulate and implement complementary fiscal insurance policies geared toward boosting meals provide in addition to decreasing agency’s price of manufacturing,” he added.