The Consumer Price Index (CPI) report for August 2023 shows that Nigeria’s headline inflation surged by 172bps to print at 25.80% y/y in Aug-2023 from 24.08% y/y in Jul-2023. On a month-on-month basis, headline inflation accelerated by 29bps to print at 3.18% in Aug-2023 from 2.89% in Jul-2023. The significant jump in inflation came from the resultant effects of the removal of fuel subsidies, which led to price increases in transportation, food, education, health, etc.  Additionally, the unification of the Foreign Exchange (FX) market segments continues to weigh on consumer prices as the Naira averaged N762.60/$ and N901.95/$ at the official market and parallel market, respectively, during Aug-2023. On a divisional level, the main drivers of the headline inflation were Food & Non-Alcoholic Beverages and Housing, Water, Electricity, Gas & Other Fuel. 

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