Market
Olamilekan Abayomi
Nigeria’s inflation rate eased to 20.12% in August, down from 21.88% in July, according to the National Bureau of Statistics. This marks the fifth consecutive month of decline since April, when the inflation rate stood at 23.71%. The year-on-year inflation rate decreased by 12.03 percentage points from 32.15% in August 2024.
Food prices slowed down, contributing significantly to the decline in inflation. Food inflation dropped to 21.87% in August from 37.52% in August 2024, a decrease of 15.65 percentage points. Key staples like imported and local rice, guinea corn flour, maize flour, millet, semolina, and soya milk saw slower price increases.
Urban inflation eased to 19.75% year-on-year, down from 34.58% in August 2024. Rural inflation stood at 20.28% year-on-year, down from 29.95% in August 2024. Core inflation, excluding volatile agricultural products and energy, was 20.33% year-on-year in August, compared to 27.58% in August 2024. On a monthly basis, core inflation rose to 1.43% from 0.97% in July.
Ekiti recorded the highest year-on-year inflation at 28.17%, followed by Kano at 27.27% and Oyo at 26.58%. Borno had the highest annual food inflation at 36.67%, while Zamfara recorded the lowest at 3.20%. While the moderation in inflation offers relief, analysts caution that structural challenges such as currency volatility, energy costs, and supply chain inefficiencies continue to pose risks. Sustaining this trend will require stable agricultural supply and policy support.
