The National Bureau of Statistics (NBS) announced that food inflation in August fell by 37.52% year-on-year.
In its report, the NBS noted that on a monthly basis, the figure was 2.37%, a decrease of 0.10% compared to the rate recorded in July 2024 (2.47%), but this was due to the fall in prices of tobacco, tea, cocoa, coffee, peanut oil, milk, yams, potatoes, water yams, cassava tubers, palm oil, vegetables, etc.
However, the figure was 8.18% higher on an annual basis than the rate recorded in August 2023 (29.34%), due to the rise in prices of bread, maize grains, corn, etc. (fine breads), yam, potato, water potato, cassava tubers, etc., palm oil, vegetables, etc. (oils and fats), Ovaltine, Milo, Lipton, etc. (coffee, tea, and cocoa classes).
Furthermore, it added that the annual average rate of food inflation for the 12 months ending August 2024 was 36.99% compared to the average of the previous 12 months, an increase of 11.98% compared to the average annual rate of change in August 2023 (25.01%).
Year-on-year food inflation rates were highest in Sokoto (46.98%), Gombe (43.25%), and Yobe (43.21%) while Benue (32.33%), Rivers (33.01%), and Bayelsa (33.36%) recorded the lowest year-on-year food inflation increase.
However, on a monthly basis, Adamawa (5.46%), Kebbi (4.48%), and Borno (3.88%) recorded the highest food inflation rate in August 2024 while Ogun (0.08%), Akwa Ibom (0.45%) and Sokoto (1.00%) recorded the lowest food inflation increase on a monthly basis.
He further said that on an annual basis, urban inflation stood at 34.58% in August 2024, 6.89 percentage points higher than 27.69% in August 2023, while rural inflation stood at 29.95%, 5.85 percentage points higher than 24.10% in August 2023.
Meanwhile, “All items less farm produce and energy” or core inflation, which excludes volatile agricultural and energy prices, stood at 27.58% year-on-year in August 2024, up 6.43 percentage points compared to 21.15% in August 2023.
“The highest increases were recorded in prices of the following items, Rents (Actual and Imputed Rentals for Housing Class), Bus Journey intercity, Journey by motorcycle, etc (under Passenger Transport by Road Class), and Accommodation Service, Laboratory service, X-ray photography, Consultation Fee of a medical doctor, etc (under Medical Services Class).”
Highest food inflation; Sokoto state by 46.98%
Lowest: Benue with 32.33%
Uche Uwaleke, a professor of capital markets at Nasarawa State University, said the decline in headline inflation was mainly due to easing food inflation due to the harvest season. He said the reported drought in many parts of the North partly explains the high food inflation in states such as Sokoto and Kebbi.
On the increase in core inflation in August, Professor Uwalake said, “What all these point to is that it is time for the CBN to recognize the real pressure points and shift some attention to how the fiscal authorities can be supported to boost food production beginning with a halt in MPR hike this month.
The FG should intervene in the recent ‘oil price dispute’ between NNPCL and Dangote Refinery to curb the adverse impact on the overall price level.”
