Inflation Rate Drops for Second Consecutive Month
Nigeria’s inflation rate slightly declined to 32.15% in August 2024, down from 33.40% in July, according to the National Bureau of Statistics (NBS). This marks the second month of easing inflation, showing a reduction of 1.25 percentage points. Despite this improvement, inflation remains high compared to the previous year, reflecting ongoing economic challenges.
Year-On-Year Inflation Sees Significant Increase
While the monthly inflation rate has slowed, the year-on-year comparison reveals a significant rise. In August 2023, the inflation rate stood at 25.80%, but by August 2024, it had surged by 6.35 percentage points. On a month-to-month basis, inflation was recorded at 2.22% in August, slightly down from 2.28% in July, showing a slower pace of price increases.
Urban and Rural Inflation Patterns
Inflation in urban areas reached 34.58% year-on-year in August, a jump of 6.89 percentage points from the previous year. The monthly urban inflation rate also dropped slightly to 2.39%. In rural areas, inflation stood at 29.95% year-on-year, increasing by 5.85 percentage points from August 2023. Month-on-month, rural inflation edged down to 2.06%, a marginal decrease from July.
Food Inflation Remains a Major Driver
Food inflation continues to be a major factor, with prices rising by 37.52% year-on-year. The increase in food prices was driven by higher costs for staples such as bread, tubers, palm oil, and beverages. However, food inflation saw a slight slowdown on a monthly basis, easing to 2.37% in August compared to 2.47% in July.
Bauchi Records Highest Inflation Rate
Among the states, Bauchi recorded the highest inflation rate at 46.46%, followed by Kebbi at 37.51% and Jigawa at 37.43%. In contrast, Benue, Delta, and Imo states reported the slowest inflation growth, with Benue recording the lowest rate at 25.13%. These figures highlight regional disparities in inflation across Nigeria.
Economic Outlook Remains Cautious
Despite the modest decline in inflation, Nigeria continues to face significant economic pressures. Rising food prices, coupled with other inflationary drivers, pose challenges for the country’s economic stability. The government’s efforts to address these concerns remain critical as Nigerians continue to grapple with high living costs.
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