Inflation surges 3.52% year-on-year in August as food prices soar

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BY BAMIDELE FAMOOFO

Uba Group

In August 2022, on a year–on- year basis, the headline inflation rate was 20.52%. This was 3.52 percent points higher compared to the rate recorded in August 2021, which was (17.01%).

The figure shows that the headline inflation rate increased in the month of August 2022 when compared to the same month in the preceding year (i.e. August 2021). It means that in August 2022, the general price level was 3.52 percent higher relative to August 2021.

On a month-on-month basis, the headline inflation rate in August 2022 was 1.77 percent; this was 0.05 percent lower than the rate recorded in July 2022 (1.82%). This means that in August 2022 the headline inflation rate (month–on–month basis) declined by 0.05 percent. The percentage change in the average CPI for the twelve months period ending August 2022 over the average of the CPI for the previous twelve months period was 17.07 percent, showing a 0.47 percent increase compared to 16.60 percent recorded in August 2021.

The food inflation rate in August 2022 was 23.12 percent on a year-on-year basis; which was 2.82 percent higher compared to the rate recorded in August 2021 (20.30%).This rise in the food inflation was caused by increases in prices of bread and cereals, food product, potatoes, yam and other tuber, fish, meat, oil and fat.

On a month-on-month basis, the food inflation rate in August was 1.98 percent, this was a 0.07 percent decline compared to the rate recorded in July 2022 (2.04%). This decline is attributed to reduction in prices of some food items like tubers, garri, local rice and vegetables.

The average annual rate of food inflation for the twelve-month period ending August 2022 over the previous twelve-month average was 19.02 percent, which was a 1.48 percent decline from the average annual rate of change recorded in August 2021 (20.50%).