Food drives August’s inflation rate to 25.80% – NBS

Bisola David
Bisola David
Food drives August's inflation rate to 25.80% - NBS

Inflation increased to 25.8 percent in August from 24.08 percent in July, according to numbers released by the National Bureau of Statistics on Friday.

According to the Punch, NBS’s Consumer Price Index for August 2023 revealed that the headline inflation rate jumped to 25.80% in August 2023 compared to the headline inflation rate in July 2023, which was 24.08%.

“Based on the change, the headline inflation rate for August 2023 increased by 1.72 percentage points from the headline inflation rate for July 2023.

“The headline inflation rate was 5.27 percent points higher on an annual basis than the rate of 20.52 percent that was registered in August 2022.”

According to the NBS, the annualized rate of food inflation in August 2023 was 29.34%, which was 6.22% higher than the rate (23.12%) that was observed in August 2022.

“The rise in food inflation on a year-over-year basis was caused by rises in the price of oil and fat, the report said,

Bread, cereals, fish, fruits, vegetables, potatoes, yams, and other tubers, as well as milk, cheese, and eggs are all examples of food groups.

“The food inflation rate in August 2023 was 3.87 percent on a month-over-month basis. When compared to the rate from July 2023 (3.45%), it is 0.41 percentage points higher.

According to the report, rises in the cost of fish, oil and fat, bread and cereals, potatoes, yams, and other tubers, as well as coffee, tea, and cocoa were to blame for the month-over-month increase in food prices.

The NBS reports that the average annual rate of food inflation over the preceding 12-month average for the 12 months ending in August 2023 was 25.01%, an increase of 5.99% points from the average annual rate of change reported in August 2022 (19.02%).

“We expect the pressure on non-food inflation to remain intact as existing factors stoking prices have intensified,” analysts at Cordros Research said on Friday. Notably, we point out that currency pressures have gotten harsher even though the characteristics of FX supply and demand are still the official and unofficial FX markets. Consequently, we expect the non-food inflation to settle at 2.24 percent m/m.

Based on our predictions for food and non-food prices, we predict that headline inflation will increase by 2.47 percent on a monthly basis in September, with a year-over-year print of 27. 18 percent due to the low base effects from the same period last year.

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