Nigeria’s inflation rate has surged to 25.80% in August 2023. This marks a 1.72% increase from the previous month’s 24.08%, as the National Bureau of Statistics (NBS) reported.
The NBS attributes this significant rise to the removal of petrol subsidies and the devaluation of the official exchange rate. Month-on-month inflation also increased to 3.18% from the previous 2.89%.
Food and non-alcoholic beverages contributed the most to the year-on-year inflation at 13.36%. They were followed by housing, water, electricity, gas, and other fuel at 4.32%, and clothing and footwear at 1.97%.
The urban inflation rate in August 2023 was 27.69%, a 6.73% increase from August 2022. Rural inflation stood at 24.10%, marking a 3.98% increase from the previous year.
The food inflation rate jumped to 29.34% in August 2023. This is a 2.35% increase from the previous month and 6.22% higher than in 2022.
The alarming rise in Nigeria’s inflation rate to 25.80% is a red flag that demands immediate attention. The removal of petrol subsidies and the devaluation of the currency are significant contributors, but they are symptoms of deeper economic issues.
The government must take immediate steps to curb this inflationary trend. Failing to do so could lead to a further erosion of the purchasing power of the average Nigerian, exacerbating poverty and inequality.
The high contribution of food and non-alcoholic beverages to the inflation rate is particularly concerning. It indicates that the necessities of life are becoming increasingly unaffordable for the average citizen.
The disparity between urban and rural inflation rates also deserves scrutiny. It suggests that the impact of inflation is not uniformly felt across the country, which could lead to social unrest.
Did You Know?
- Nigeria is the largest economy in Africa, with a GDP of $514 billion as of 2021.
- The Central Bank of Nigeria aims to keep inflation between 6-9%.
- The removal of petrol subsidies in Nigeria has been a contentious issue, sparking protests in the past.
- The Naira, Nigeria’s currency, has been devalued multiple times recently.
- Inflation affects the poor disproportionately, as they spend a larger share of their income on food and other necessities.