By Philip Clement
The increase in petroleum products, air tickets, electricity tariff among other items has skyrocket Nigeria’s inflation rate to N13.22 per cent In a report released by the National Bureau of Statistics (NBS) on the Consumer Price Index, which measures inflation, the increase represents a 0.40 per cent points higher than the 12.82 per cent recorded in July.
According to the report, on a monthon-month basis, the Headline index increased by 1.34 per cent in August 2020, which is 0.09 per cent higher than the rate recorded in July 2020 (1.25 per cent).
The report showed that urban inflation rate increased by 13.83 per cent in August 2020 from 13.40 per cent recorded in July 2020, while the rural inflation rate increased by 12.65 per cent in August 2020 from 12.28 per cent in July 2020.
The composite food index according to the report rose by 16 per cent in August 2020 compared to 15.48 per cent in July 2020.
It said, “On a month-on-month basis, the food sub-index increased by 1.67 per cent in August 2020, up by 0.15 per cent points from 1.52 per cent recorded in July 2020.
“The average annual rate of change of the Food sub-index for the twelve months ending August 2020 over the previous twelve-month average was 14.87 per cent, representing a 0.24 per cent points increase from the average annual rate of change recorded in July 2020 (14.63%).
“This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Fish, Fruits, Oils and fats and Vegetables.”
The highest increases were recorded in prices of passenger transport by air, hospital services, medical services, pharmaceutical products, maintenance and repair of personal transport equipment, vehicle spare parts, motor cars, passenger transport by road, miscellaneous services relating to the dwelling, repair of furniture and Paramedical services.
“The average 12-month annual rate of change of the index was 9.64 per cent for the twelve months ending August 2020.
This is 0.16 per cent points higher than 9.48 per cent recorded in July 2020,” it added. Checks have shown that the hike in air tickets, increase in petroleum products as well as hike in electricity were the chief drivers of the inflation rates.
The decision of the government to hike the prices of electricity and petrol have been greeted with wide accusations and condemnations by labour civil society organizations and citizens.