While Nigeria’s year-on-year inflation rose for the seventh straight month to 20.52% in August 2022, the latest knowledge from Nigeria’s National Bureau of Statistics exhibits that the month-on-month charge declined from 1.82% to 1.77% throughout the identical interval. The depreciation of the native foreign money, disruptions in the provision of meals merchandise, and a rise in the prices of manufacturing are stated to be the elements behind the latest improve.
Currency Depreciation Driving Inflation
According to the latest data from Nigeria’s National Bureau of Statistics (NBS), the West African nation’s headline inflation for the month of August 2022 topped 20.52%. The latest charge is 3.51 proportion factors increased than the 17.01% recorded in August 2021.
With this latest surge, Nigeria has now seen its year-on-year (YoY) inflation improve for the seventh consecutive month. According to the statistical physique, the depreciation of the native foreign money is among the predominant elements that triggered the YoY inflation charge to surge.
As reported by Bitcoin.com News, the Nigerian foreign money’s trade charge towards the U.S. greenback plunged to a brand new low in late July 2022. While the nation’s central financial institution has blamed speculators for his or her position in undermining the native foreign money, some economists argue that the continued scarcity of overseas foreign money is basically to blame.
Besides the foreign money depreciation, the NBS additionally pointed to disruptions in the provision of meals and the rise in normal manufacturing prices as the opposite elements that triggered the YoY inflation charge to rise.
Month-on-Month Inflation Declines
However, regardless of the latest surge in the nation’s YoY inflation, the NBS knowledge suggests the month-on-month inflation dropped marginally from the 1.82% seen in July 2022 to 1.77% in August 2022. Concerning the nation’s shopper worth index (CPI), the statistical physique stated:
The proportion change in the typical CPI for the twelve months interval ending August 2022 over the typical of the CPI for the earlier twelve months interval was 17.07%, displaying a 0.47% improve in contrast to 16.60% recorded in August 2021.
Meanwhile, the NBS knowledge exhibits that the YoY inflation charge in city Nigeria (20.95%) was marginally increased than in rural Nigeria (20.12%). On a month-to-month foundation, the agricultural inflation charge dropped by 0.06% from 1.81% in July 2022 to 1.75% in August 2022, whereas the city charge solely went down by 0.03%.
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