Inflation hits 17.6 percent in August

Data released by the National Bureau of Statistics (NBS) shows that annual inflation in Nigeria accelerated to 17.6 percent in the month of August, a fresh 11-year high and the seventh monthly increase in a row.

According to a statement released by the NBS, “in August the Consumer Price Index (CPI) which measures inflation increased by 17.6% (year-on-year), 0.5% points higher from the rate recorded in July (17.1%). Increases were recorded in all 12 Classification of Individual Consumption by Purpose (COICOP) divisions which contribute to the Headline index reflecting higher prices across the board.”

“The major divisions responsible for accelerating the pace of the increase in the headline index were Housing, Water, Electricity, Gas and Other Fuel, Education and Transportation Services.

“During the month, the highest increases were seen in solid fuels, vehicles parts, books and stationeries and clothing,” the NBS said in a statement.

Nigeria which is the most populated country in Africa, and once the largest economy on the continent slid into recession for the first time in more than 20 years, largely due to the impact of low oil prices and a drastic rise in domestic production cost. The oil dependent nation is grappling with the implication of oil dependence as Crude oil export account for over 70 percent of government revenue and over 80 percent of foreign exchange earnings.

The NBS says “Urban and Rural Prices continued to rise in the month of August. The Urban index increased by 19.3 percent (year-on-year) in August from 18.9 percent recorded in July, while the Rural index increased by 16.1 percent in August from 15.5 percent in July.

“On a month-on-month basis, both Urban and Rural index increased at a slower pace, as Urban index rose by 0.9 percent in August from 1.4 percent in July, while the Rural index rose by 1.09 percent from 1.12 percent in July.

Responding to the figures, Ikechukwu Kelikume, a don at the Pan African University says, inflation has continued to rise in Nigeria because of elements including the high cost of production, deprecation of the naira and government policy delays and inaction.”