The Nigerian National Bureau of Statistics has released the latest data showing that Nigeria's month-on month inflation rate decreased from 1.82% down to 1.77%. This is despite Nigeria's annual inflation rising for the seventh consecutive month to 20.52% in Aug 2022. According to the latest report, the reasons for the increase are the depreciation and disruptions in food supply as well as an increase in production costs.
Currency Depreciation Drives Inflation
According to Nigeria's National Bureau of Statistics, the headline inflation in West Africa for August 2022 was 20.52%. This rate is 3.51 percentage point higher than August 2021's 17.01%.
This latest surge has seen Nigeria's YoY inflation rate increase for the seventh consecutive monthly period. According to statistics, YoY inflation rates rose due to the depreciation in the local currency.
According to Bitcoin.com News in July 2022, the exchange rate of the Nigerian currency against the U.S. Dollar plunged to a new low. Although the central bank blames speculators for undermining the currency, economists believe that the continuing shortage of foreign currency is the main reason.
The NBS pointed out that the YoY inflation rate rose due to currency depreciation and other factors such as disruptions in food supply and an increase in general production cost.
Month-on-Month Inflation Drops
NBS data shows that YoY inflation in the country has dropped slightly from the 1.82% recorded in July 2022, to 1.77% in august 2022, despite this latest spike. The statistical body stated that the consumer price index (CPI) of the country was unchanged at 1.77% in August 2022.
The average CPI change for the 12 months ending August 2022 compared to the CPI average for the preceding twelve months was 17.07%. This is a 0.47% decrease compared with August 2021's 16.60%.
NBS data also shows that YoY inflation in urban Nigeria (20.95%) was slightly higher than rural Nigeria (20.12%). The rural inflation rate fell by 0.06%, from 1.81% in June 2022 to 1.755% in August 2022. While the urban rate increased by only 0.03%.
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By: Terence Zimwara
Title: Nigerian Inflation Rate Rises to 20.52% in August — Month-on-Month Rate Drops
Sourced From: news.bitcoin.com/nigerian-inflation-rate-rises-to-20-52-in-august-month-on-month-rate-drops/
Published Date: Mon, 19 Sep 2022 08:00:05 +0000