Nigeria’s inflation slows to 11.02% in August- NBS

The National Bureau of Statistics (NBS) has said the nation’s inflation rate slowed to 11.02 per cent (year-on-year) in August 2019, a 0.06 per cent points lower than 11.08 per cent it recorded in July 2019.
Checks by LagosBusinesnews, however, shown that the latest inflation figure by the Statistics office for August represents the lowest this year.
The NBS in its Consumer Price Index report on Tuesday said, disinflation continued in August 2019 despite several pronouncements regarding restrictions on the import of some food items, minimum wage and the recent border closures.
According to the report, “It is important to note that with respect to the latter, the border was only closed 20 August 2019 with only 11 days of 31days for any significant impact to be felt either way on prices.
“The inflation rate is also the average prices for the whole month and not only the price of goods and services in the last few days of the month. Furthermore, the harvest season and existing weak consumer demand and their natural effect to slow down food and other prices will also play a major role in determining the direction of inflation.
“Against this backdrop, in August 2019, all major indices slowed except urban inflation year on year.
“On a month-on-month basis, the headline index increased by 0.99 per cent in August 2019, which is 0.02 per cent rate lower than the rate recorded in July 2019 (1.01) per cent.
“The percentage change in the average composite CPI for the 12 months period ending August 2019 over the average of the CPI for the previous twelve months period was 11.271 per cent, showing 0.02 per cent point from 11.291 per cent recorded in July 2019.”
The report noted that the composite food index rose by 13.17 per cent in August 2019 compared to 13.39 per cent in July 2019.
According to NBS, the rise in the food index was caused by increases in prices of Oils and fats, Meat, Bread and cereals, Potatoes, yam and other tubers and Fish
“On month-on-month basis, the food sub-index increased by 1.22 per cent in August 2019, down by 0.04 per cent points from 1.26 per cent recorded in July 2019.
“The average annual rate of change of the Food sub-index for the 12-month period ending August 2019 over the previous twelve-month average was 13.458 per cent, 0.002 per cent points from the average annual rate of change recorded in July 2019 (13.460) per cent.
“The urban inflation rate increased by 11.48 per cent (year-on-year) in August 2019 from 11.43 per cent recorded in July 2019, while the rural inflation rate increased by 10.61 per cent in August 2019 from 10.64 per cent in July 2019.
“On a month-on-month basis, the urban index rose by 1.04 per cent in August 2019, down by 0.03 from 1.07 per cent recorded in July 2019, while the rural index also rose by 0.93 per cent in August 2019, down by 0.03 from the rate recorded in July 2019 (0.96) per cent.
“The corresponding twelve-month year-on-year average percentage change for the urban index is 11.62 per cent in August 2019. This is less than 11.64 per cent reported in July 2019, while the corresponding rural inflation rate in August 2019 is 10.95 per cent compared to 10.97 per cent recorded in July 2019.”