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Nigeria’s Inflation Rate Hits 13.22%, Highest in 29 Months

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Nigeria’s inflation rate rose to 13.22% in August 2020, the highest rate recorded in 29 months since March 2018, the National Bureau of Statistics said on Tuesday.

The NBS in its latest report said the Consumer Price Index (CPI), which measures inflation increased by 13.22 percent (year-on-year) in August 2020. This is 0.40per cent points higher than the rate recorded in July 2020 (12.82 percent).

According to the release, on a month-on-month basis, the headline index increased by 1.34 percent in August 2020, showing 0.09 per cent higher than the rate recorded in July 2020 (1.25 per cent).

The statistics agency said that the over two-year high was largely due to the supply disruption of goods and services caused by the COVID-19 pandemic.

The composite food index rose by 16 per cent in August, compared to 15.48 per cent in July, according to the statistics office.

“This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fish, fruits, oils and fats and vegetables,” the NBS added.

The NBS added: “On a month-on-month basis, the food sub-index increased by 1.67 percent in August 2020, up by 0.15 percent points from 1.52 percent recorded in July 2020.”

The report further revealed that core inflation which excludes the prices of volatile agricultural produce stood at 10.52 percent in August 2020, up by 0.42 percent when compared with 10.10 percent recorded in July 2020.

Similarly, urban inflation rose to 13.83% year on year from the 13.40% recorded in July. On a month on month basis, the index climbed 1.42%, while rural inflation stood at 12.65%.

The report revealed that inflation was highest in Kogi (17.29%), Bauchi (15.77%), Ebonyi, and Yobe (14.71%), while Lagos (11.45%), Kwara (11.22%), and Abuja (11.17%) recorded the slowest rise in headline Year on Year inflation.

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