Inflation Increased by 11.23% in August 2018; 0.09 Higher Than July 2018 Rate

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The National Bureau of Statistics (NBS) says the inflation rate, measured by the Consumer Price Index (CPI), has increased by 11.23 per cent (year-on-year) in August 2018. This is 0.09 per cent points higher than the rate recorded in July 2018 (11.14) per cent and represents the first year on year rise in headline inflation following eighteenth consecutive disinflation in headline inflation.

According to the bureau, increases were recorded in all COICOP divisions that yielded the Headline index.

The NBS disclosed this in its CPI report for August 2018 released on Friday in Abuja and made available to Brand Spur Nigeria.

On a month-on-month basis, the Headline index increased by 1.05 per cent in August 2018, down by 0.08 percent points from the rate recorded in July 2018 (1.13) percent).

The percentage change in the average composite CPI for the twelve months period ending August 2018 over the average of the CPI for the previous twelve months period was 13.55 percent, showing 0.4 percent point from 13.95 percent recorded in July 2018.

The urban inflation rate increased by 11.67 percent (year-on-year) in August 2018 from 11.66 percent recorded in July 2018, while the rural inflation rate increased by 10.84 percent in August 2018 from 10.83 percent in July 2018.

On a month-on-month basis, the urban index rose by 1.00 percent in August 2018, down by 0.23 from 1.23 percent recorded in July, while the rural index also rose by 0.96 percent in August 2018, down by 0.22 percent from the rate recorded in July 2018 (1.18) percent.

The corresponding twelve-month year-on-year average percentage change for the urban index is 13.95 percent in August 2018. This is less than 14.33 percent reported in July 2018, while the corresponding rural inflation rate in August 2018 is 13.21 percent compared to 13.64 percent recorded in July 2018.

Food Index

The composite food index rose by 13.16 percent in August 2018 compared to 12.85 percent in July 2018.

This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetables, Fish, Fruits and Oils and Fat.

On a month-on-month basis, the food sub-index increased by 1.42 percent in August 2018, up by 0.02 percent points from 1.40 percent recorded in July.

The average annual rate of change of the Food sub-index for the twelve-month period ending August 2018 over the previous twelve-month average was 16.50 percent, 0.6 percent points from the average annual rate of change recorded in July (17.10) percent.

All Items Less Farm Produce

The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.0 percent in August 2018, down by 0.2 percent from the rate recorded in July 2018 (10.2) percent.

On a month-on-month basis, the core sub-index increased by 0.78 percent in August 2018. This was down by 0.03 percent when compared with 0.81 percent recorded in July 2018.

The highest increases were recorded in prices of Domestic services and household services, Dental services, Hospital services, Medical services, Repair of household appliances, Tobacco, Wine and Repair of furniture.

The average 12-month annual rate of change of the index was 11.28 percent for the twelve-month period ending August 2018; this is 0.2 percent points lower than 11.48 percent recorded in July. 

State Profiles

In analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.   

All Items Inflation

In August 2018, all items inflation on year on year basis was highest in Yobe (12.90%), Lagos (12.64%) and Enugu (12.52%), while Kwara (8.25%), Borno (9.88%) and Benue (10.11%) recorded the slowest rise in headline Year on Year inflation.

On month on month basis however, August 2018 all items inflation was highest in Plateau (1.96%), Lagos (1.73), and Ogun (1.58%), while Kwara recorded negative inflation or price deflation, Abia (0.37%) and Delta (0.53%) recorded the slowest rise on a month on month all item basis in August 2018. 

Food Inflation

In August 2018, food inflation on a year on year basis was highest in Lagos  (15.79%), Abuja (14.99%) and Ebonyi (14.83%), while Kano (10.64%), Akwa Ibom (11.02%) and Borno (11.03%) recorded the slowest rise in food inflation.

On month on month basis however, August 2018 food inflation was highest in Ebonyi (2.71%), Lagos (2.57%) and Katsina (2.49%), while Abia (0.25%) and Delta (0.27%) recorded the slowest rise with Kwara recording food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in August 2018.

Download CPI and Inflation Report August 2018 here

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