The National Bureau of Statistics (NBS) has reported that the headline inflation rate fell to 32.15% in August 2024, down from 33.40% in July 2024, reflecting a decrease of 1.25 percentage points.
However, year-on-year comparisons reveal that the inflation rate has increased by 6.35 percentage points compared to August 2023, when it stood at 25.80%. This indicates a persistent inflationary trend despite the monthly decline.
On a month-on-month basis, the inflation rate for August 2024 was recorded at 2.22%, slightly lower than July’s rate of 2.28%, suggesting a moderation in the pace of price increases.
The NBS also noted that the 12-month average Consumer Price Index (CPI) change for the period ending August 2024 was 31.26%, marking an increase of 8.88 percentage points from the 22.38% recorded in August 2023.
Urban and Rural Inflation Insights
Urban inflation for August 2024 reached 34.58%, a rise of 6.89 percentage points from the previous year. The month-on-month urban inflation rate was 2.39%, down from 2.46% in July.
Conversely, rural inflation was reported at 29.95% year-on-year, up by 5.85 percentage points from August 2023, with a month-on-month decrease to 2.06% from July’s 2.10%.
Food Inflation on the Rise
Food inflation surged to 37.52% year-on-year, an increase of 8.18 percentage points from August 2023. This rise is attributed to price hikes in essential items such as bread, maize, yam, and various cooking oils. Month-on-month food inflation decreased to 2.37% from July’s 2.47%.
The average annual food inflation rate for the 12 months ending August 2024 was 36.99%, reflecting an increase of 11.98 percentage points from the previous year’s average of 25.01%.
State-by-State Inflation Trends
On a state level, Bauchi recorded the highest year-on-year inflation rate at 46.46%, followed by Kebbi at 37.51% and Jigawa at 37.43%. In contrast, Benue (25.13%), Delta (26.86%), and Imo (28.05%) experienced the slowest inflation rates.
This decline in headline inflation may signal that the Central Bank of Nigeria’s policies are beginning to take effect, potentially offering relief to Nigerians facing rising living costs.