Monthly inflation in Nigeria dropped in July with 17.38 percent recorded, as against the 17.75 percent (year-on-year) recorded for June, 2021.
This has happened for the fourth consecutive month, as reported by the National Bureau of Statistics (NBS), which released its Consumer Price Index, (CPI) report on Tuesday.
The drop indicates 0.37 percent points lower than the rate recorded in June 2021 (17.75) percent.
Notwithstanding the drop in CPI in July, NBS said prices of major items were on the rise, but at a slower rise than it did in June 2021.
“There was rise in the food index which was caused by increases in prices of milk, cheese and eggs, coffee, tea and cocoa, vegetables, bread and cereals, soft drinks, and meat”, NBS said.
To this end, NBS said increases were recorded in all divisions that yielded the headline index.
“On month-on-month basis, the headline index increased by 0.93 percent in July 2021. This was 0.13 percentage points lower than the rate recorded in June 2021 (1.06) percent.
The percentage change in the average composite CPI for the twelve months period ending July 2021 over the average of the CPI for the previous twelve months period was 16.30 percent, showing 0.37 percent point rise from 15.93 percent recorded in June 2021″.
There was also an increase in urban inflation rate by 18.01 percent (year-on-year) in July 2021 from 18.35 percent
recorded in June 2021, while the rural inflation rate increased by 16.75 percent in July 2021 from 17.16 percent in June 2021.
“On a month-on-month basis, the urban index rose by 0.98 percent in July 2021, down by 0.11 points
against the rate recorded in June 2021 (1.09 percent), while the rural index also rose by 0.87 percent in
July 2021, down by 0.15 points over the rate that was recorded in June 2021 (1.02 percent)”.
“The corresponding twelve-month year-on-year average percentage change for the urban index was 16.89 percent in July 2021. This is higher than 16.51 percent reported in July 2021, while the corresponding rural inflation rate in July 2021 was 15.73 percent compared to 15.36 percent recorded in June 2021”, NBS explained.
All items less farm produce or core inflation, which excludes the prices of volatile agricultural produce , stood at 13.72 percent in July 2021, up by 0.63 percent when compared with 13.09 percent recorded in June 2021.
On month-on-month basis, the core sub-index increased by 1.31 percent in July 2021. This was up by 0.50 percent when compared with 0.81 percent recorded in June 2021.
The highest increases were recorded in prices of garments, shoes and other footwear, Clothing materials, other articles of clothing and clothing accessories, Vehicle spare parts, Major household appliances whether electric or not, Pharmaceutical products, Cleaning, repair and hire of clothing, Furniture and furnishing, Medical services and hospital services.
“The average 12-month annual rate of change of the index was 12.05 percent for the twelve-month period ending July 2021; this is 0.29 percent points higher than 11.75 percent recorded in June 2021”, NBS reported.