Nigeria’s consumer price index has shown a decrease in the inflation rate from 17.38 percent in August to 17.01 percent in August of 2021 on a year-on-year basis, according to a monthly report by the National Bureau of Statistics (NBS).
That is 0.37 percent points lower than the rate recorded in July 2021 (17.38) percent, the figure that was released this Wednesday showed.
Even though rates had declined since April 2021, on-the-spot surveys of prices of commodities across Nigerian markets indicate that prices continue to skyrocket.
Analysts believe that inflation remains a controversial issue in Nigeria, with many saying the figures of the government owed statics bureau do not reflect actual prices of consumer products in the country.
But the latest NBS report said increases were recorded in all COICOP divisions that yielded the Headline index.
On a month-on-month basis, the Headline index increased by 1.02 percent in August 2021, this is 0.09 percent rate higher than the rate recorded in July 2021 (0.93) percent.
The percentage change in the average composite CPI for the twelve months period ending August 2021 over the average of the price index for the previous twelve months period was 16.60 percent, showing 0.30 percent point from 16.30 percent recorded in July 2021.
The urban inflation rate increased by 17.59 percent (year-on-year) in August 2021 from 18.01 percent recorded in July 2021, while the rural inflation rate increased by 16.43 percent in August 2021 from 16.75 percent in July 2021.
Many analysts warn that government must intensify efforts at clearing the issue of insecurity that is seriously threatening food security in Nigeria.
Apart from the Boko Haram insurgency, Nigeria is also faced with the issue of violent banditry that has forced many farmers into internally displaced person camps, causing a shortage to the food supply chain.
On a month-on-month basis, the urban index rose by 1.06 percent in August 2021, up by 0.08 the rate recorded in July 2021 (0.98), while the rural index also rose by 0.99 percent in August 2021, up by 0.12 the rate that was recorded in July 2021 (0.87) percent.
The corresponding twelve-month year-on-year average percentage change for the urban index is 17.19 percent in August 2021. This is higher than 16.89 percent reported in July 2021, while the corresponding rural inflation rate in August 2021 is 16.03 percent compared to 15.73 percent recorded in July 2021.