Olayemi Michael Cardoso, CBN Governor

New CBN gov begins with record high inflation rate of 25.80%

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Nigeria’s inflation rose to 25.80% in August 2023, 1.72% points higher than the 24.08% recorded in the previous month.

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This is indicative of the seriousness of the challenges of the economy as the new leadership of the Central Bank of Nigeria under Olayemi Cardoso takes off.

According to the CPI report released by the National Bureau of Statistics (NBS), the significant inflation increase in August was largely caused by the removal of petrol subsidy and liquidity challenges in the foreign exchange market on consumer prices.

Month-on-month inflation rose to 3.18% in the review month from 2.89% recorded in the previous month.In terms of contribution to the year-on-year inflation, food and non-alcoholic beverages (13.36%) contributed the most, followed by housing, water, electricity, gas and other fuel (4.32%), clothing and footwear (1.97%).According to the report, food inflation increased to 29.34 per cent year on year in August, which was 6.22 per cent higher compared to 23.12 per cent in August 2022.

Year-on-year, the rise in food inflation was attributed to increases in prices of oil and fat, bread and cereals, fish, fruit, meat, vegetables and potatoes, yam and other tubers, vegetables, milk, cheese and eggs.Month-on-month, the food index rose to 3.87 per cent, or 0.41 per cent higher than 3.45 per cent in July, occasioned by increases in prices of bread and cere­als, potatoes, yam and other tubers, fish, oil and fat, coffee, tea, and cocoa.

On the other hand, the all items less farm produce and energy or core inflation, which excludes the prices of volatile agricultural produce and energy rose to 21.15 per cent year on year in August, up by 4.03 per cent compared to 17.12 per cent in August 2022.The highest increases were recorded in prices of passenger transport by air, passenger transport by road, medical services, vehicle spare parts, maintenance, and repair of per­sonal transport equipment, among others.

Month-on-month, the core index increased to 2.18 per cent in August from 2.11 per cent in July.Meanwhile, on an annual basis, urban inflation rose to 27.69 per cent, up by 6.73 per cent from 20.95 per cent in August 2022.On a month-on-month ba­sis, the urban inflation rate was 3.29 per cent in August, up from 0.24 per cent in July.

Rural inflation was 24.10 per cent year-on-year, which was 3.98 per cent higher compared to 20.12 per cent in August 2022.Month-on-month, the rural index was 3.08 per cent, up by 0.34 per cent compared to 2.74 per cent in July.At states level, general inflation, year on year, was highest in Kogi 31.50 per cent; Lagos (29.17 per cent); and Rivers (29.06 per cent), while Sokoto (20.91 per cent); Borno (21.77 per cent); and Nasarawa (22.25 per cent) recorded the slowest rise in inflation.

On a month-on-month, however, inflation was highest in Kwara (6.07 per cent); Osun (4.36 per cent); and Kogi (4.35 per cent); while Sokoto (1.38 per cent); Borno (1.73 per cent) and Ogun (1.89 per cent) recorded the slowest rise.Also, year-on-year, food inflation was highest in Kogi (38.84 per cent), Lagos (36.04 per cent), and Kwara (35.33 per cent), while Sokoto (20.09 per cent), Nasarawa (24.35 per cent) and Jigawa (24.53 per cent) recorded the slowest rise in food inflation.

On a month-on-month basis, however, food inflation was highest in Rivers (7.12 per cent), Kwara (5.89 per cent), and Kogi (5.80 per cent), while Sokoto (0.50 per cent), Abuja (1.30 per cent) and Niger (1.40 per cent) record­ed the slowest rise.

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