Nigeria: Inflation comes in at highest level since August 2005 in August
Inflation increased to 25.8% in August, above July’s 24.1%. August’s result marked the highest inflation rate since August 2005, and reflected the removal of fuel subsidies and the devaluation of the naira. The acceleration was broad-based, with greater price pressures recorded for food, transportation, and housing and energy.
The trend pointed up, with annual average inflation coming in at 22.4% in August (July: 21.9%). Meanwhile, core inflation rose to 21.1% in August, from July’s 20.5%.
Lastly, consumer prices increased 3.18% over the previous month in August, accelerating from the 2.89% increase seen in July. August’s result marked the highest reading since January 2012.
Analysts at the EIU commented:
“An inflationary spiral […] that began in 2022 is poised to enter a more intense phase as the impact of past currency devaluation and petrol price rises works through the system, with powerful first- and second-round pass-through effects.”