The National Bureau of Statistics disclosed this in its ‘Consumer Price Index August 2020’ report which was released on Tuesday.August figure recorded the highest since March 2018 which recorded 13.34 per cent inflation rate.
The banking regulator anchored the projection on supply shocks which may likely happen due to decline in economic activities globally as a result of COVID-19 pandemic that started in China in Q4, 2019. The percentage change in the average composite CPI for the 12-month period ending August 2020 over the average of the CPI for the previous 12-month period was 12.23 per cent, representing a 0.18 per cent point rise from 12.05 per cent recorded in July 2020.
This is higher than 12.66 per cent reported in July, while the corresponding rural inflation rate in August was 11.66 per cent compared to 11.49 per cent recorded in July 2020. “The way forward to rein in inflation is for the government to tackle insecurity so that farmers could return to the farms and put in place a deliberate policy to promote large scale mechanised agriculture.”
Head, Research Investment Management, Sigma Pensions Mr Wale Okunriboye said, “In line with our broad expectations, headline Inflation continued its uphill climb in August on account of higher food prices and to a lesser extent a pick-up in core inflation. He added, “As the source of this inflationary spiral has more to do with cost-push factors than demand-pull pressures, we think that Nigeria’s economic managers are likely to focus on supply side interventions than any adjustments to monetary policy over the near term.”
Speaking on rising food prices, he said, “That is critical because we spend most of our income on food, an average person spends almost 60 per cent on food, so if food is going up, that means it is a challenge to the economy, it means that whatever is earned by the civil servant is just being depleted.Inflation may continue to rise till December – CBN