Nigeria: Inflation drops in August but remains elevated
September 15, 2017
In August, consumer prices rose 0.97% compared to the prior month, down from July’s 1.21% increase. August’s uptick was broad-based, with prices rising for food and non-alcoholic beverages, clothing and footwear, and housing, water, electricity, gas and other fuel, amongst other categories.
Inflation slipped from 16.1% in July to 16.0% in August. Although inflation is down markedly since the start of the year, it is still far above the Central Bank’s 6.0%–9.0% target range, where it has been since surging in the middle of last year as a result of utility price hikes and a weak naira. Core consumer prices, which exclude volatile agricultural produce, rose 0.93% in August compared to the prior month (July: +1.00% month-on-month). Lastly, core inflation ticked up from 12.2% in July to 12.3% in August.
Author: Oliver Reynolds, Economist