Nigeria’s Inflation Improves Further in August

• Nigeria’s Inflation Improves Further in August

The new data released by the National Bureau of Statistics (NBS) shows consumer prices moderated slightly in the month of August despite restrictions on food items and border closures.

According to the report, the Consumer Price Index (CPI), which measures the inflation rate grew at 11.02 percent in August, down from 11.08 percent recorded in July.

On a monthly basis, headline inflation increased by 0.99 percent in the month, 0.02 percent lower than the 1.01 percent recorded in July.

Food index grew at 13.45 percent year-on-year in the month, slightly lower by 0.002 percent points when compared with 13.46 percent achieved in July.

On a month by month basis, the food index increased by 1.22 percent in the month, down by 0.004 percent from 1.26 percent filed in July.

The bureau attributed the decline to the harvest season and weak consumer demand that likely forced retailers to sell at a discounted rate.

“The harvest season and existing weak consumer demand and their natural effect to slow down food and other prices will also play a major role in determining the direction of inflation,” the report stated.

It also noted that the effect of the border closure is yet to fully reflect on the headline inflation as the borders were closed on August 20, ten days to the end of the month.

Therefore, the number may tick higher in September when the full effect would have been factored-in by the bureau.