Nigeria’s inflation rises for the first time after 18-month decline

Nigeria’s inflation has risen for the first since it started its decline in January 2017.

This is according to the latest inflation report published by the National Bureau of Statistics on Friday.

According to the report, the rate at which prices of goods and services increased in August rose to 11.23% from 11.14%.

“The consumer price index, (CPI) which measures inflation increased by 11.23 percent (year-on-year) in August 2018. This is 0.09 percent points higher than the rate recorded in July 2018 (11.14) percent and represents the first year on year rise in headline inflation following eighteenth consecutive disinflation in headline inflation,” the report read.

“Increases were recorded in all COICOP divisions that yielded the Headline index. On month-on-month basis, the Headline index increased by 1.05 percent in August 2018, down by 0.08 percent points from the rate recorded in July 2018 (1.13) percent).”

In July, Bismarck Rewane, economic analyst, had predicted that the inflation numbers would increase in August.

“The rate of moderation in inflation is slowing which means that we are getting close to the point of deflation,” he had said, commenting on July’s inflation numbers.

“When you annualise the month on month inflation, it actually comes out at 15.94%, that is disturbing and that is going to affect the discussions at the MPC meeting today and tomorrow.

“Also important is 17 consecutive months of annual decline in inflation but it’s now getting to the point when it will start going up again. Month on month inflation is more current than year on year inflation.”