The annual inflation rate in Nigeria rose to 25.8% in August, marking the eighth consecutive month of increases, according to the National Bureau of Statistics. This figure is the highest recorded since December, when inflation stood at 21.3%.
Food Inflation Surges
In August, food inflation surged to 29.3% from the previous month's figure of 27%. The Central Bank of Nigeria attributes this increase to rising prices for food items such as edible oils and eggs. Factors such as security concerns in food-producing areas, higher energy costs for transportation, and deficiencies in public infrastructure have also contributed to the upward trend in food and core inflation.
Soaring Fuel Prices
The price of diesel has more than doubled, soaring from NGN400 per liter to NGN850 per liter over the past year. Additionally, petrol prices have tripled since the removal of subsidies at the end of May. Motorists now have to pay between NGN580 and NGN630 per liter, compared to the previous price of NGN195.
The decision by the Central Bank of Nigeria to float the national currency against the U.S. dollar has resulted in a depreciation of the naira. Consequently, this depreciation has further fueled price increases across various sectors.