The inflation rate in Nigeria eased for the second consecutive month to 32.15% in August, but the cost of rent, medical services and transportation remain on an upward trend
This was disclosed in the Consumer Price Index (CPI) Inflation Report published by the National Bureau of Statistics (NBS) on Monday.
According to the report, “All items less farm produce and energy” inflation, which covered the cost of rent, medical services, transport and more, stood at 27.58% in August. This was a notable increase from the 27.47% recorded in July.
A significant spike in the cost of rent, transport (especially buses and motorcycles), and medical services like consultations and X-rays, were highlighted as major contributors to the surge in core inflation recorded in Nigeria.
“Core inflation, which excludes the prices of volatile agricultural produce and energy, stood at 27.58% in August 2024 on a year-on-year basis; up by 6.43% when compared to the 21.15% recorded in August 2023,” the NBS report read in part.
The report further noted that the highest price increases were seen in “rents (actual and imputed rentals for housing class), bus journey intercity, journey by motorcycle, etc. (under passenger transport by road class), and accommodation service, laboratory service, X-ray photography, consultation fee of a medical doctor, etc. (under medical services class)”.
In July, Nigeria recorded a slight ease in the fluctuation of transport fares, according to the Transport Fare Watch published by the NBS. However, the reality in August, with the increase in core inflation and rising transport costs, paints a grimmer picture.
Relative to August 2023, which was barely three months into President Bola Tinubu’s administration, core inflation has surged by about 6 points, from 19.18%.
States like Bauchi, Kebbi and Jigawa were the most affected, recording the highest increases in core inflation in August due to rising costs in essential services.
Meanwhile, on the food inflation front, Nigeria fared somewhat better. The country recorded a 37.52% food inflation rate in August, representing a 0.10% decrease compared to July. The report attributed this slight decline to specific food items.
“The fall can be attributed to the decline in the rate of increase in the average prices of tobacco, tea, cocoa, coffee, groundnut oil, milk, yam, Irish potatoes, water yam, cassava tuber, palm oil and vegetables,” the NBS report read.
However, reduced food inflation may not necessarily guarantee a reduction in the cost of making a healthy diet, as evidenced in July.
For instance, Nigeria’s food inflation rate fell to 39.53% in July, down from 40.87% in June. Despite the fall, the cost of healthy diet still increased by 2% in the same month, according to the NBS.
