Rising Food Prices Push Inflation Further to 8.5%

The Consumer Price Index (CPI), which measures inflation, rose to 8.5 per cent in August compared to 8.3 per cent in the previous month, according to the National Bureau of Statistics (NBS). This would be the sixth time in a row the headline index has increased relative to the previous month, further dampening hopes that the current tight monetary policy regime may be eased by the Central Bank of Nigeria (CBN). The NBS, in its latest CPI figures released yesterday, attributed the rise in inflation to higher prices in a broad array of food groups which contributed to the index. It said prices were however slowed by a muted increase in the bread and cereal group. According to the statistical agency, the food index rose higher to 10.0 per cent in August compared to 9.9 per cent recorded in July. Urban prices increased by 0.2 percentage points to 8.7 per cent (year-on-year) in August – the fourth consecutive month – while its rural component has exhibited the same trend over the period increasing by 0.3 percentage points from 8.1 per cent in July to 8.4 in August. However, on a month-on-month basis, the pace of increase in urban prices slowed for two straight months as Urban Headline Index increased by 0.51 per cent in August, roughly 0.2 percentage points lower from July. The Rural All-items Index rose at a slower pace by 0.47 per cent in August, down from 0.60 per cent in July. It said: The pace of increase in all the items less farm produce or core index, which excludes the prices of volatile agricultural products slowed for the second consecutive month in August.

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