Nigeria’s inflation slowed for the third consecutive month in August 2019. The inflation reduced from 11.08 percent in July to 11.02 percent in August.
The inflation figures were provided by the Nigeria Bureau of Statistics Nigeria’s inflation rate fell to the lowest in more than three years in August as growth in food prices slowed. Consumer prices rose 11.02% from a year earlier compared with 11.08% in July, the National Bureau of Statistics said on Tuesday, September 17 in a report published on its website.
According to the NBS report, inflation dropped by 0.06% points year-on-year, lower than the 11.08% recorded in July and 11.22% rate for June 2019. Similarly, food inflation dropped to 13.17% from 13.39%, while core inflation dropped to 8.68% from 8.80% recorded in the previous month.
The bureau in the report stated that the inflation rate of 11.02 percent for August represents a decrease of 0.06 percentage points year-on-year.
The NBS said that the drop in inflation rate continued in August despite several pronouncements regarding restrictions on the import of some food items, minimum wage, and the recent border closures. With respect to the impact of border closure on consumer prices, the bureau stated that the country may not see a significant effect on inflation now as the closure was only captured for 11 days during the 31 days reference period in August.
According to Nairametrics, the latest slowed down in inflation suggests potential improvement in business activities, as consumption in the economy may rise following a drop in inflation. Hence, companies’ revenue may equally improve as aggregate demand inches up. To individuals, this means an improvement in the purchasing power of the consumers to buy goods and services. That is, the ability to buy more with the same income level. Lastly, for policymakers, the latest drop in inflation rate reinforces recent policy measures that are targeted at driving Nigeria’s inflation rate to a single digit.