Nigeria’s headline inflation rate dropped to 33.40 per cent in July 2024 from 34.19 per cent in June 2024, its first decline since December 2022 when it last dropped to 21.34 per cent, according to the latest report by the National Bureau of Statistics (NBS).
The NBS’ Consumer Price Index (CPI) report for July 2024 indicates the headline inflation rate decreased by 0.79 percentage points in July 2024 compared to June 2024.
A breakdown of the figure shows that on a year-on-year basis, the rate was 9.32 percentage points higher than in July 2023, when it stood at 24.08 percent, indicating an increase in the headline inflation rate on a year-on-year basis for July 2024 compared to the same month in the previous year.
On a month-on-month basis, the headline inflation rate in July 2024 was 2.28 percent, slightly lower than the 2.31 percent recorded in June 2024.
The report said, “In July 2024, the headline inflation rate eased to 33.40 percent relative to the June 2024 headline inflation rate of 34.19 percent. Looking at the movement, the July 2024 headline inflation rate showed a decrease of 0.8 percent points when compared to the June 2024 headline inflation rate.
“On a year-on-year basis, the headline inflation rate was 9.32 percent points higher compared to the rate recorded in July 2023, which was 24.08 percent. 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).”
On a year-on-year basis, in July 2024, the Urban inflation rate was 35.77 percent, this was 9.94 percent points higher compared to the 25.83 percent recorded in July 2023. On a month-on-month basis, the Urban inflation rate was 2.46 percent in July 2024, this was 0.003 percent points lower compared to June 2024 (2.46%). The corresponding 12-month average for the Urban inflation rate was 32.89 percent in July 2024, which is 10.02 percent points higher compared to the 22.87 percent reported in July 2023.
The Rural inflation rate in July 2024 was 31.26 percent on a year-on-year basis, which is 8.77 percent higher compared to the 22.49 percent recorded in July 2023. On a month-on-month basis, the Rural inflation rate in July 2024 was 2.10 percent, down by 0.07 percent points compared to June 2024 (2.17%).
The corresponding twelve-month average for the Rural inflation rate in July 2024 was 28.86%.
The Food inflation rate in July 2024 was 39.53% on a year-on-year basis, 12.55% points higher compared to the rate recorded in July 2023 (26.98%). The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following items Semovita, Yam Flour (Prepacked), Wheat Flour (Prepacked), etc (Bread and Cereals Class), Yam, Irish
Potatoes, Water Yam, etc (Potatoes, Yam & Other Tubers Class), Groundnut Oil, Palm Oil, etc (Oil & Fats Class) and Milo, Bournvita, Ovaltine (Coffee, Tea & Cocoa Class), etc.
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 average annual rate of Food inflation for the twelve months ending June 2024 over the previous twelve-month average was 36.36%, an 11.90% points increase from the average annual rate of change recorded in July 2023 (24.46%).
