Friday,September 07, 2018 / 07:18 PM / FSDH 

FSDHResearch expects the inflation rate (year-on-year) to remain unchanged at11.14% in August 2018, the same rate recorded in the month of July. Although weobserved moderation in the prices of some food items in August, the contractionin the agriculture sector may place pressure on food prices in coming months. 

TheNational Bureau of Statistics (NBS) will release the inflation rate for themonth of August on Friday, 14 September 2018. The Food Price Index (FPI) reportthat the Food and Agriculture Organization (FAO) published for the month ofAugust 2018 notes that food prices in the international market increasedmarginally in August from the July levels. 

Theprices of sugar, edible oil and dairy dropped in August compared with Julywhile the prices of cereal and meat increased. The depreciation of currenciesin Brazil and India against the US Dollar resulted in the decrease in sugarprices. However, tight export in wheat and maize forced prices up. 

FSDHResearch’s analysis indicates that the value of the Naira depreciated at boththe Nigerian Autonomous Foreign Exchange (NAFEX), and the parallel market atend-August 2018. At the NAFEX and parallel markets, the value of the Nairadepreciated by 0.40% and 0.08% to close at US$/N362.65 and US$/N306.15respectively at the end of August. 

Themarginal increase in the international prices of food coupled with thedepreciation in the value of the Naira placed an upward pressure on prices ofsome consumer goods in August. The prices of food items that FSDH Researchmonitored in August 2018 moved in varying directions. 

Themovement in the prices of food items during the month led to a 1.10% increasein our Food and Non-Alcoholic Index. This Index increased year-on-year by12.76%, up from 251.66 points recorded in August 2017. We also observed anincrease in the prices of Transport and Housing, Water, Electricity, Gas &Other Fuels divisions between July and August 2018. 

Weestimate that the increase in the Composite Consumer Price Index (CCPI) inAugust would produce an inflation rate of 11.14%, same as the figure recordedin July.

Related News

1.       AugustHeadline Inflation Expected to Inch Up to 11.15%

2.      Nigeria’s July,2018 Inflation: 5 Things to Note

3.      HeadlineInflation Slips to 11.14% in July 2018

4.      InflationDeclines in July, But Upside Risk Abounds

5.      HeadlineInflation Drops to 11.14% in July 2018; 0.09% Lower Than June 2018 Rate

6.     InflationRate to Drop Marginally to 11.01% in July 2018

7.     WatchingFrom The Political Balcony - LBS Executive Breakfast Session – Aug 2018

8.    Nigeria:Mid-Year Economic Review By Biodun Adedipe Associates

9.     Nigeria’sHeadline Inflation Drops To 11.23% In June 2018

10.  HeadlineInflation Drops to 11.23% in June 2018; 0.37% Lower Than May 2018 Rate

11.  ExpectedDrop in Inflation Rate and Yields Movement