Nigerian Inflation Rate Rises to 20.52% in August — Month-on-Month Rate Drops – Africa Bitcoin News

While Nigeria’s year-on-year inflation rose for the seventh straight month to 20.52% in August 2022, the latest data from Nigeria’s National Bureau of Statistics shows that the month-on-month rate declined from 1.82% to 1.77% during the same period. According to the most recent increase, the main factors are the depreciation and disruptions in food supply as well as an increase in production costs.

Currency Depreciation Drives Inflation

According to the latest data from Nigeria’s National Bureau of Statistics (NBS), the West African country’s headline inflation for the month of August 2022 topped 20.52%. This rate is now 3.51 percentage point higher than August 2021’s 17.01%.

This latest spike has seen Nigeria’s YoY inflation rate increase for the seventh month in a row. The YoY inflation rate surged due to the decline in the value of the local currency, according to statistics.

As reported by Bitcoin.com News, the Nigerian currency’s exchange rate against the U.S. dollar plunged to a new low in late July 2022. While the country’s central bank has blamed speculators for their role in undermining the local currency, some economists argue that the ongoing shortage of foreign currency is largely to blame.

The NBS pointed out that the YoY inflation rate rose due to currency depreciation and other factors such as disruptions in food supply or an increase in production costs.

Declines in Month-on-Month inflation

However, despite the latest surge in the country’s YoY inflation, the NBS data suggests the month-on-month inflation dropped marginally from the 1.82% seen in July 2022 to 1.77% in August 2022. Concerning the country’s consumer price index (CPI), the statistical body said:

In August 2022, the percentage change in average CPI over the prior twelve-month period was 17.07%. That’s a 0.47% decrease from August 2021 when 16.60% was recorded.

NBS data showed that YoY inflation rates in Nigerian cities (20.95%) and rural Nigeria (20.12%) were marginally lower than those in the countryside. The rural rate of inflation fell by 0.6%, from 1.81% in June 2022 to 1.755% in August 2022. While the urban rate decreased by only 0.03%.

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Terence Zimwara

Terence Zimwara was a Zimbabwean award-winning journalist and writer. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.