Nigeria’s headline inflation rate dropped to 33.40% in July from 34.19% recorded in June 2024.
This is according to the Consumer Price Index (CPI) report for July 2024, released Thursday, by the National Bureau of Statistics (NBS).
This is the first time the headline inflation rate has decreased in 19 months. The last time the rate dropped was in December 2022 when it decreased 21.34% from 21.47% in November of the same year. It thereafter rose to 21.82% in January 2023 and has been on an upward spiral since then.
According to the report, the headline inflation rate reflects a 0.8% points decrease when compared to the June 2024 rate.
The report said that the headline inflation rate was 9.32% points higher on a year-on-year basis when compared to the rate recorded in July 2023, which was 24.08%. “This shows that the headline inflation rate (year-on-year basis) increased in July 2024 compared to the same month in the preceding year (i.e. July 2023),” the report stated.
On the other hand, the report revealed that on a month-on-month basis, the headline inflation rate in July 2024 was 2.28%. This represents a 0.03% decrease from the rate recorded in June 2024 which was 2.31%.
“This means that in July 2024, the rate of increase in the average price level was lower than the rate of increase in the average price level in June 2024,” the NBS CPI report explained.
The food inflation rate in July 2024 was 39.53%. This shows that it however increased by 12.55% points on a year-on-year basis, when compared to 26.98% recorded in July 2023.
Explaining the cause of the rise in food inflation rate on a year-on-year basis, the Bureau said it was due to increase in prices of Semovita, Yam Flour (Prepacked), Wheat Flour (Prepacked), Yam, Irish Potatoes, Water Yam, Groundnut Oil, Palm Oil, and Milo, Bournvita, Ovaltine.
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“On a month-on-month basis, the Food inflation rate in July 2024 was 2.47% which shows a 0.08% decrease compared to the rate recorded in June 2024 (2.55%). The fall can be attributed to the decline in the rate of increase in the average prices of Tin Milk, Baby Powdered milk, etc (Under Milk, Cheese & egg Class), Mudfish fish, Fresh fish (Obokun), snail, etc. (Under Fish Class), Date Palm fruit (Debenu), Watermelon, etc., Garri, Akpu (fufu), etc. (Under Bread and Cereals Class), Exercise books, Textbooks, etc (Under Books & Stationaries Class) and Turkey meat, Minced Pork, etc (Under Meat Class),” the report added.
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