Nigeria’s inflation rate drops to 11.02% in August, the lowest in more than 3 years

Nigeria’s inflation rate drops to 11.02% in August, the lowest in more than 3 years

<ul><li>Nigeria’s inflation drops to lowest in three and a half years.</li><li>The rate has been falling steadily since May 2019.</li><li>CBN MPC will meet next week to decide on key lending rates as inflation falls.</li></ul>

<p class="">Nigeria’s inflation rate dropped to 11.02% in August from <a href="https://www.pulse.ng/bi/finance/nigerias-inflation-rate-drops-to-1108-in-july-2019-here-are-the-highlights/tgdcz10" id="f278aeea-6ee0-4dd1-b69d-143556b639eb">11.08% in July 2019</a>, the National Bureau of Statistics (NBS) said on Tuesday, September 17th.</p>

<p class="">This figure is 0.06% points lower than the rate recorded in July 2019 and this is the lowest since January 2016.</p>

<p class="">According to NBS, disinflation continued in August 2019 despite several pronouncements regarding restrictions on the import of some food items, minimum wage, and the recent <a href="https://www.pulse.ng/news/local/buhari-explains-why-nigeria-benin-border-was-closed/38hv5n8" id="8ed93692-4e36-4543-a09d-2cb156815f7f" data-link-role-code="none">border closures</a>.</p>

<p class=""><em>“All major indices slowed except urban inflation year on year</em></p>

<p class=""><em>“On a month-on-month basis, the Headline index increased by 0.99% in August 2019. This is 0.02% rate lower than the rate recorded in July 2019 (1.01%),”</em> the report states.</p>

<figure class="embedded_application" align="center"> <figcaption></figcaption> </figure>

<p class=""><strong>Key highlights from the August inflation report:</strong></p>

<ul><li><strong>Urban and rural inflation </strong></li></ul>

<p class="">The urban inflation rate increased by 11.48% (year-on-year) in August 2019 from 11.43% recorded in July 2019, while the rural inflation rate increased by 10.61 % in August 2019 from 10.64% in July 2019.</p>

<p class="">On a month-on-month basis, the urban index rose by 1.04 percent in August 2019, down by 0.03 from 1.07% recorded in July 2019, while the rural index also rose by 0.93 percent in August 2019, down by 0.03 from the rate recorded in July 2019 (0.96%).</p>

<p class="">The corresponding twelve-month year-on-year average percentage change for the urban index is 11.62 percent in August 2019. This is less than 11.64% reported in July 2019, while the corresponding rural inflation rate in August 2019 is 10.95 percent compared to 10.97% recorded in July 2019.</p>

<ul><li><strong>Food Inflation</strong></li></ul>

<p class="">In August 2019, food inflation on a year on year basis was highest in Kebbi (17.20%), Kano (16.08%) and Adamawa (15.95%), while Bayelsa (10.22%), Katsina (9.64%) and Kogi (8.97%) recorded the slowest rise.</p>

<p class="">On month on month basis, however, August 2019 food inflation was highest in Akwa Ibom (2.56%), Enugu (2.37%) and Ogun (2.17%), while Kogi (0.09%), Benue (0.05%) and Delta (0.03%) recorded the slowest rise.</p>

<figure class="embedded_application" align="center"> <figcaption></figcaption> </figure>

<h2>Why this is important</h2>

<p class="">The drop in inflation rate increase the purchasing power of citizens as the price of goods and services fall. It also allows people to save more.</p>

<figure class="image" align="center"> <img src="http://ocdn.eu/images/pulscms/ODY7MDA_/dc48fdfc2677eef4222758abd64f75b8.jpg" alt="CBN governor, Godwin Emefiele"> <figcaption>CBN governor, Godwin Emefiele</figcaption> </figure>

<h2>CBN MPC holds meeting next week</h2>

<p class="">The Central Bank of Nigeria (CBN) will hold its 269th meeting of the Monetary Policy Committee (MPC) next week.</p>

<p class="">At the meeting, members of the country’s monetary authority will decide on key lending rates as inflation falls steadily since May 2019.</p>

<p class="">In March 2019, the MPC loosen interest rate to 13.5% from 14% as part of an attempt to stimulate growth and signal a new direction.</p>

2,770
Like
Save

Comments

Write a comment

*