Inflation Rate Expanded 40bps To 13.22% In August
By UDO ONYEKA
The Nigeria’s headline inflation maintained its upward trajectory, as it expanded by 40bps in August 2020 to 13.22 per cent year on year (July: 12.82 per cent y/y), according to figures from National Bureau of Statistics, NBS, the highest level since March 2018.
This outturn is 13bps higher than Cordros Researchers (13.09 per cent y/y) estimate, owing to a negative surprise from food inflation and 25bps higher than Bloomberg consensus (12.97 per cent y/y) estimate.
Month-on-Month, headline inflation increased by 9bps to 1.34 per cent, the highest level since June 2017.
In the same vein food inflation rose by 52bps to 16.00 per cent year on year in the period under review.
According to Cordros analysts banditry and flood cases in the food producing regions of the country, as well as the exchange rate adjustment may have negatively influenced the food basket.
Pertinently, the rise in the food index was caused by increases in prices of bread and cereals, fish, potatoes, Yam and other tubers, meat, fruits, oils and fats, fruits and vegetables.
Elsewhere, core inflation was up by 42bps to 10.52 per cent year on year.
Pressures were most significant in the prices of Passenger transport by air, Hospital services, Medical services, Pharmaceutical products, Maintenance and repair of personal transport equipment, Vehicle spare parts, Motor cars, Passenger transport by road, Miscellaneous services relating to the dwelling, Repair of furniture and Paramedical services. Compared to July, the core index was up by 30bps to 1.05 per cent, the highest since June 2017.
On a year-on-year basis, the rate of increase in the prices was recorded in Kogi (17.29 percent), Bauchi (15.77 percent) and Ebonyi and Yobe (14.71 percent), while Lagos (11.45 percent), Kwara (11.22 percent) and Abuja (11.17 percent) recorded the slowest rise in headline year-on-year inflation.
