The consumer price index, (CPI) which measures inflation increased by 13.22 percent (year-on-year) in August 2020.
The National Bureau of Statistics (NBS) in its CPI and Inflation Report for August 2020 published on its website Tuesday in Abuja, it showed that the figure was 0.40 percentage points higher than the rate recorded in July 2020 (12.82 percent).
This is the twelve consecutive increase recorded in inflation figures.
According to the statistics bureau, Increases were recorded in all COICOP divisions that yielded the Headline index
On a month-on-month basis, the Headline index increased by 1.34 percent in August 2020. This is 0.09 percent higher than the rate recorded in July 2020 (1.25 percent).
The percentage change in the average composite CPI for the twelve months period ending August 2020 over the average of the CPI for the previous twelve months period was 12.23 percent, representing a 0.18 percent point rise from 12.05 percent recorded in July 2020.
The NBS noted that primarily food prices was the major driver of inflation for the month under review.
Accordingly, the composite food index rose by 16.00 percent in August 2020 compared to 15.48 percent in July 2020.
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.
On 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 average annual rate of change of the Food sub-index for the twelve-month period ending August 2020 over the previous twelve-month average was 14.87 percent, representing a 0.24 percent points increase from the average annual rate of change recorded in July 2020 (14.63 percent).
Reacting to the NBS inflation report, foremost Professor of the Capital Market at the Nasarawa State University, Uche Uwaleke said the uptick in inflationary rate may likely continue till the harvest season sets in.
He said: “This is particularly so given the fact that the inflationary pressure is coming more from the food component which increased by as much as 16%.
“The economy is still reeling from the negative impact of COVID’19 on the food supply chain. This situation is compounded by the border closure, increase in VAT, electricity tariffs, stamp duties and upward exchange rates adjustment by the CBN in order to ease the pressure on the forex market.
“The recent increase in pump price of fuel presents further downside risks.
“There is also the insecurity challenge affecting the food belts of the country which partly explains the high rate of food inflation, at over 20%, in a state like Kogi.”
The former Imo finance was optimistic that the rate would moderate towards the end of the fourth quarter as the harvest season sets in couple with increase in external reserves “following gradual recovery in crude oil price which helps stabilise Exchange rate.
“I also think the COVID’19 interventions by the government and the CBN especially in the Agric value chain will begin to manifest in Q4 2020.
“The way forward to rein-in inflation is for the government to tackle insecurity so that farmers can return to the farms and put in place a deliberate policy to promote large scale mechanized Agriculture.
“This will involve scaling up interventions in Agriculture including through recapitalizing Development Finance institutions such as the Bank of Agriculture,” he added.
