Latest inflation report for month from the National Bureau of Statistics (NBS) has revealed on Wednesday that food prices continued its soaring trend in the month of August despite declining inflation.
For the fifth consecutive month, inflation rate in August settled at 17.01 per cent, lower than July figure of 17.38 per cent (Year-on-Year), reflecting 0.37 per cent drop.
The composite food index of the Consumer Price Index rose by 20.30 per cent in August 2021 compared to 21.03 per cent in July 2021.
In the month under review, findings by NBS showed food items such as bread and cereals, milk, cheese and egg, oils and fats; potatoes, yam and other tuber and other food product like meat and coffee, tea and cocoa recorded price increments above previous prices recorded in July.
On month-on-month basis, the food sub-index increased by 1.06 per cent in August 2021, up by 0.20 per cent point from 0.86 per cent recorded in July 2021.
The average annual rate of change of the food sub-index for the 12-month period ending August 2021 over the previous 12-month average was 20.50 per cent, 0.34 per cent points from the average annual rate of change recorded in July 2021 (20.16) per cent.
“On month-on-month basis, the headline index increased by 1.02 percent in August 2021, this is 0.09 per cent rate higher than the rate recorded in July 2021 (0.93) per cent.
“The percentage change in the average composite CPI for the 12-month period ending August 2021 over the average of the CPI for the previous 12 months was 16.60 per cent, showing 0.30 per cent point from 16.30 per cent recorded in July 2021
“The urban inflation rate increased by 17.59 per cent (year-on-year) in August 2021 from 18.01 per cent recorded in July 2021, while the rural inflation rate increased by 16.43 per cent in August 2021 from 16.75 per cent in July 2021.
“On a month-on-month basis, the urban index rose by 1.06 per cent in August 2021, up by 0.08 the rate recorded in July 2021 (0.98), while the rural index also rose by 0.99 percent in August 2021, up by 0.12 the rate that was recorded in July 2021 (0.87) per cent.
“The corresponding 12-month year-on-year average percentage change for the urban index is 17.19 per cent in August 2021. This is higher than 16.89 per cent reported in July 2021, while the corresponding rural inflation rate in August 2021 is 16.03 per cent compared to 15.73 per cent recorded in July 2021,” NBS explained.
The agency said that core inflation, which excludes the prices of volatile agricultural produce, stood at 13.41 per cent in August 2021, down by 0.31 per cent when compared with 13.72 per cent recorded in July 2021.