Nigeria’s annual inflation rate rose to 25.80 per cent in August from 24.08 per cent in the previous month, the National Bureau of Statistics (NBS) said Friday.
The statistics office said the August 2023 headline inflation rate shows an increase of 1.72 per cent points when compared to the July 2023 headline inflation rate.
The NBS said on a year-on-year basis, the headline inflation rate was 5.27 per cent points higher compared to the rate recorded in August 2022, which was 20.52 per cent.
“This shows that the headline inflation rate (year-on-year basis) increased in August 2023 when compared to the same month in the preceding year (i.e., August 2022),” it said.
According to the report, the food inflation rate in August rose to 29.34 per cent on a year-on-year basis, which was 6.22 per cent points higher compared to the rate recorded in August 2022 (23.12 per cent ).
Food prices have been on the rise across Nigeria in recent years. The situation deteriorated due to the impact of government policies such as the removal of subsidy on petrol, among others.
President Bola Tinubu on 29 May during his inauguration, announced the removal of subsidy on petrol. This development has caused hardship for many Nigerians with its attendant increase in the prices of goods and services.
Apart from the removal of subsidy, the Central Bank of Nigeria (CBN) also announced the unification of all segments of the forex exchange (FX) market as part of efforts to engender transparency in the markets and boost investors’ confidence.
The policy has been widely applauded as well-intentioned and necessary but has put additional pressure on the local currency and manufacturers, with ripple effects on prices.
Inflation has remained high in Africa’s largest economy, prompting the central bank to hike interest rates to their highest levels in nearly two decades.
In July, the Central Bank of Nigeria (CBN), raised its benchmark lending rate to 18.75 per cent.
The bank said, “hiking the interest rate has made a lot of difference in moderating the rate of inflation”.
It noted that the option to continue the hike in the policy rate, albeit moderately, also presented a strong alternative premised on the expected liquidity injections into the economy from the recent efforts to unify the nation’s foreign exchange markets.
In July, Tinubu ďeclared an immediate State of Emergency on food insecurity to tackle the increase in food prices.
He also directed that “all matters pertaining to food & water availability and affordability, as essential livelihood items, be included within the purview of the National Security Council.”
