September 17, 2024/Futureview Research

Headline Inflation

In August 2024, the headline inflation rate eased to 32.15%, down from 33.40% in July 2024, reflecting a 1.25% point decrease. However, on a year-on-year basis, inflation was 6.35% points higher than August 2023’s rate of 25.80%. Month-on-month, inflation for August 2024 stood at 2.22%, slightly lower than July 2024’s 2.28%, indicating a slower increase in the average price level compared to the previous month.

Source: NBS, Futureview Research

Urban Inflation

In August 2024, the urban inflation rate increased to 34.58% year-on-year, 6.89% points higher than the 27.69% recorded in August 2023. On a month-on-month basis, urban inflation was 2.39%, slightly lower by 0.07% points compared to July 2024’s 2.46%. The twelve-month average urban inflation rate stood at 33.44% in August 2024, 9.98% points higher than the 23.46% reported in August 2023.

Rural Inflation

The rural inflation rate for August 2024 was 29.95% on a year-on-year basis, reflecting a 5.85% increase compared to August 2023’s 24.10%. On a month-on-month basis, the rural inflation rate dropped slightly to 2.06%, down by 0.04% from July 2024’s 2.10%. Additionally, the twelve-month average inflation rate for rural areas in August 2024 stood at 29.32%, which is 7.93% higher than the 21.39% recorded in August 2023.

Food Inflation

In August 2024, the year-on-year food inflation rate was 37.52%, 8.18% higher than the 29.34% recorded in August 2023. This increase was driven by rising prices in key categories like bread, cereals, tubers (such as yam and potatoes), oils and fats, and beverages (like tea and coffee). On a month-on-month basis, food inflation decreased slightly to 2.37%, down by 0.10% from July 2024, due to a slower rise in the prices of items like tea, coffee, palm oil, and tubers. The twelve-month average food inflation rate up to August 2024 was 36.99%, an 11.98% increase from the 25.01% recorded in August 2023.

Core Inflation (All Items less Farm Produce and Energy)

Core inflation, which excludes volatile agricultural produce and energy, reached 27.58% year-on-year in August 2024, a 6.43% rise from the 21.15% recorded in August 2023. The most significant price increases were seen in categories such as housing rents, intercity bus journeys, motorcycle transport, and medical services (including consultation fees, lab services, and X-ray photography).

STATE PROFILES

All Items Inflation

In August 2024, Bauchi (46.46%), Kebbi (37.51%), and Jigawa (37.43%) recorded the highest year-on-year inflation rates. In contrast, Benue (25.13%), Delta (26.86%), and Imo (28.05%) experienced the slowest year-on-year inflation increases. On a month-on-month basis, the largest inflation spikes occurred in Kwara (4.45%), Bauchi (4.22%), and Adamawa (3.99%), while Ogun (0.21%), Abuja (0.92%), and Kogi (1.14%) saw the smallest monthly inflation rises.

Food Inflation

In August 2024, Sokoto (46.98%), Gombe (43.25%), and Yobe (43.21%) had the highest year-on-year food inflation, while Benue (32.33%), Rivers (33.01%), and Bayelsa (33.36%) saw the slowest increases. On a month-on-month basis, Adamawa (5.46%), Kebbi (4.48%), and Borno (3.88%) recorded the highest inflation rates, while Ogun (0.08%), Akwa-Ibom (0.45%), and Sokoto (1.00%) had the lowest increases.