Prices moderated further in Africa’s largest economy, Nigeria, in the month of August despite rising costs and growing economic uncertainties.
Consumer Price Index (CPI), which measures the inflation rate, grew by 17.01 percent year-on-year in August 2021, representing a 0.37 percent decrease when compared to the 17.38 percent recorded in the month of July 2021.
On a monthly basis, the inflation rate increased by 1.02 percent in August 2021, slightly high by 0.09 percent than the 0.93 percent filed in July, the National Bureau of Statistics (NBS) stated in its latest report.
Prices of goods and services continued to drop on paper in recent months even as prices are hitting record highs across most sectors in Nigeria.
Naira has plunged to a record low against the United States Dollar and other global currencies following the Central Bank of Nigeria’s decision to halt the sale of forex to Bureau De Change Operators in an effort to curb illicit financial flows and forex supplies to the black market.
Naira plunged to N560 per United States Dollar at the black on Wednesday to set a new record low against the greenback and subsequently dragged on the cost of import goods and the profit of import-dependent businesses.
Food Index also rose at a slower pace in August 2021 even with Nigerians complaining of over 50 percent increase in the price of food items. The food composite index rose by 20.30 percent in August, at a slower pace when compared to 21.03 percent recorded in the month of July 2021.
The 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 tubers, Food products n.e.c, Meat and Coffee, tea and cocoa, according to the NBS report.
On a monthly basis, the food sub-index grew by 1.06 percent in August 2021, representing an increase of 0.20 percent from 0.86 percent filed in the month of July 2021.
Looking at a more stable food index gauge, the twelve-month period ending August 2021 over the previous twelve-month average, the food index increased by 0.34 percent from 20.16 percent achieved in July 2021 to 20.50 percent in August 2021.