The headline inflation rate in August 2024 stood at 32.15%, marking a slight decrease of 1.25%-points from 33.40% in July 2024, according to the National Bureau of Statistics (NBS).
Despite this reduction on a month-to-month basis, when compared year-on-year, the August 2024 headline inflation rate increased by 6.35%-points from the 25.80% recorded in August 2023, indicating that the overall inflationary pressures are still significantly higher than they were a year ago.
On a month-to-month basis, the headline inflation rate for August 2024 was recorded at 2.22%, reflecting a marginal decrease from 2.28% in July 2024.
This means that while prices continued to rise, the rate at which they increased slowed slightly between July and August.
When it comes to food inflation, the rate in August 2024 was 37.52%, which was 8.18%-points higher than the 29.34% recorded in August 2023. The year-on-year increase in food inflation was driven by rising prices of essential food items such as bread, maize grains, yams, palm oil, and other staples.
On a month-to-month basis, food inflation stood at 2.37% in August 2024, representing a slight decrease of 0.10%-points from 2.47% in July 2024.
The slight decline in the month-to-month figure can be attributed to the moderation in the prices of some food items like tea, cocoa, coffee, milk, and various tubers.
Overall, while both headline and food inflation showed some short-term easing in August, the year-on-year data indicates that inflationary pressures, particularly driven by food prices, remain a significant challenge for the Nigerian economy.
Inflationary pressures in Nigeria varied significantly across states, with food inflation serving as a major driver of overall inflation in most cases. Overall, while some states saw a decrease in inflation rates, the high cost of food and other goods continues to pose a significant challenge for consumers across Nigeria.
Below is a list of the 10 most expensive states in Nigeria based on their all-item inflation rate for August 2024:
Abia – 34.41%
After maintaining the sixth position on the list of most expensive states in Nigeria twice, Abia experienced a significant drop in both all-item and food inflation in August 2024.
- The all-item inflation rate decreased from 35.9% in July to 34.41% in August, reflecting a 1.49% decline.
- Similarly, food inflation also saw a 3.14% drop, going from 43.2% in July to 40.06% in August.
- This reduction in both overall inflation and food inflation indicates that the inflationary pressures in Abia have eased slightly.
- However, food inflation remains a major contributor to the overall inflation rate, with food prices still significantly high.
Oyo – 34.44%
Leaving its seventh position on the previous month’s list, Oyo State recorded a drop in the all-item inflation rate from 35.6% in July to 34.44% in August 2024, representing a 1.16% decrease.
- Similarly, food inflation followed a downward trend, falling from 40.70% in July to 39.02% in August, a 1.68% decrease.
- Despite the reduction, food inflation still plays a crucial role in driving the overall inflation rate in the state.
Lagos – 34.76%
From its ninth position in July 2024, Lagos, known for its high cost of living, saw a 0.74% decrease in all-item inflation, which dropped from 35.5% in July to 34.76% in August 2024.
- Food inflation, however, saw a more substantial decline, dropping by 3.43%, from 39.76% in July to 36.33% in August.
- This reduction in food inflation suggests that the cost of food is becoming more stable in the state, although it still remains higher than the overall inflation rate.
Gombe – 35.23%
Moving higher from its 10th position in the previous month, Gombe recorded a slight decrease in all-item inflation, from 35.5% in July to 35.23% in August, reflecting a 0.27% drop.
- Food inflation remained almost constant, decreasing by just 0.16%, from 43.40% in July to 43.24% in August 2024.
- The minimal reduction in food inflation shows that food prices are still a major driver of inflation in the state, with food costs continuing to account for a large portion of household spending.
Niger – 35.41%
Niger State saw a 0.53% increase in all-item inflation, with the rate rising from 34.88% in July to 35.41% in August 2024.
- Food inflation also increased slightly, moving from 40.03% in July to 40.51% in August, a 0.48% rise.
- These increases indicate that inflationary pressures are growing in Niger, particularly in terms of food prices, which remain a significant factor in the state’s overall inflation rate.
- The rising food inflation, combined with the increase in all-item inflation, suggests that Niger residents are likely experiencing growing costs for both food and other goods and services, adding to the inflationary burden in the state.
Yobe – 35.43%
Yobe experienced a 0.29% increase in all-item inflation, with the rate moving from 35.14% in July to 35.43% in August 2024.
- Food inflation, on the other hand, saw a more significant rise of 0.91%, increasing from 42.31% in July to 43.22% in August.
- This uptick in both all-item and food inflation highlights that food prices are a major driver of inflation in the state.
Sokoto – 35.89%
From its fifth position on the list in July 2024, Sokoto’s all-item inflation remained relatively stable between July and August 2024, holding steady at 35.89%.
- However, food inflation saw a modest increase, rising by 0.68%, from 46.3% in July to 46.98% in August.
- The fact that food inflation is much higher than the overall inflation rate suggests that rising food costs are the primary driver of inflation in Sokoto.
Jigawa – 37.44%
After being the second most expensive state in Nigeria in July 2024, Jigawa witnessed a significant decrease in both all-item and food inflation in August 2024.
- The all-item inflation rate dropped from 40.8% in July to 37.44% in August, a 3.36% decrease. Similarly, food inflation fell from 46.06% in July to 42.75% in August, reflecting a 3.31% decrease.
- Despite the reductions, food inflation remains a significant factor in Jigawa’s overall inflation rate, with food prices still considerably higher.
Kebbi – 37.50%
Leaving its third position to Jigawa, Kebbi’s all-item inflation rate remained unchanged at 37.50% between July and August 2024.
- However, food inflation saw a slight increase of 0.67%, rising from 40.14% in July to 40.81% in August.
- This indicates that while the overall inflation rate has stabilized, food prices continue to rise, contributing to the inflationary pressures in the state.
Bauchi – 46.46%
For the fourth consecutive time, Bauchi recorded the highest all-item inflation rate among the top 10 states, with a rate of 46.46% in August 2024, up from 46.0% in July.
- This represents a 0.46% increase in the all-item inflation rate. Interestingly, food inflation in Bauchi decreased by 1.2%, dropping from 35.10% in July to 33.90% in August.
- This divergence between rising all-item inflation and declining food inflation suggests that non-food items are driving inflation in Bauchi.
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