Nigeria’s inflation rate eased to 32.15% in August 2024, marking the second consecutive month of decline, according to the National Bureau of Statistics (NBS). This drop follows a 33.40% inflation rate recorded in July. While inflation remains high, the slower rate of increase in prices offers some relief to consumers who have been struggling with rising costs of goods and services.

In its August Consumer Price Index (CPI) report, the NBS highlighted a month-on-month decline of 2.22%, reflecting a 0.06% reduction compared to July. On a year-on-year basis, the inflation rate rose by 6.35% compared to 25.80% in August 2023, indicating that while prices are still rising, the rate of increase has slowed.

Food inflation also declined, with a 37.52% rate in August compared to 39.53% in July. Key factors contributing to the slowdown in food inflation include price reductions in staples such as yam, palm oil, Irish potatoes, and cassava. However, on a year-on-year basis, food inflation still showed an 8.18% rise compared to August 2023, driven by increases in the prices of bread, maize, guinea corn, and other essential commodities.

Despite this slight improvement, Nigeria continues to face severe inflationary pressures, particularly in food prices, which have soared since the removal of petrol subsidies and the liberalization of the naira in 2023. The resulting economic challenges have pushed more Nigerians into poverty and heightened food insecurity. In response, President Bola Tinubu declared a state of emergency on food security in July 2023 and introduced measures such as suspending duties and taxes on essential food imports. While these policies have slowed the rate of inflation, they have yet to bring it under control.

The NBS report also provided insights into the regional variation in food inflation. Sokoto, Gombe, and Yobe states experienced the highest food inflation rates in August, while Benue, Rivers, and Bayelsa had the lowest. On a month-to-month basis, Adamawa, Kebbi, and Borno saw the sharpest increases in food prices, while Ogun, Akwa Ibom, and Sokoto recorded the slowest growth.

In summary, while the decline in Nigeria’s inflation rate is a positive development, the overall economic situation remains challenging, particularly with food prices continuing to rise year-on-year. The government’s efforts to address inflation will be critical as the country navigates this economic crisis.