Nigeria’s Inflation Slows in July, Sixth Consecutive Decline Since January’17

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August 28, 2017

By Peter OBIORA InvestAdvocate

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Lagos (INVESTADVOCATE)-Nigeria’s inflation rate has slowed to 16.05 percent year-on-year in July, 0.05 percent points lower from the rate recorded in June (16.10) percent, according to latest statistics from the National Bureau of Statistics (NBS).

“This represents the sixth consecutive decline in the rate of headline year on year inflation since January 2017,” NBS said in its report.

The nation’s statistics office reports that increases were recorded in all Classification of Individual Consumption by Purpose (COICOP) divisions that yield the Headline Index.

The NBS says on a month-on-month basis, the Headline index increased by 1.21 percent in July 2017, 0.37 percent points lower from the rate of 1.58 percent recorded in June.

“The percentage change in the average composite CPI for the twelve-month period ending in July 2017 over the average of the CPI for the previous twelve-month period was 17.47 percent, 0.11 percent point lower from 17.58 percent recorded in June 2017,” the report added.

According to the NBS, the Urban index rose by 16.04 percent (year-on-year) in July 2017, down by 0.11 percent point from 16.15 percent recorded in June, and the Rural index increased by 16.08 percent in July from 16.01 percent in June.

On month-on-month basis, the urban index rose by 1.25 percent in July 2017, down by 0.35 percent point from 1.60 percent recorded in June, while the rural index rose by 1.18 percent in July 2017, down by 0.39 percent point from 1.57 percent in June.

It further reports that the corresponding twelve month year-on-year average percentage change for the urban index increased from 18.69 percent in June to 18.43 percent in July, while the corresponding rural index also increased from 16.56 percent in June to 16.60 percent in July.

NBS says  food price pressure continued into July as all major food sub-indexes increased. The Food Index increased by 20.28 percent (year-on-year) in July, up by 0.37 percent points from the rate recorded in June (19.91 percent). This represents the highest year on year increase in food inflation since the beginning of the new series in 2009.

The rise in the index was caused by increases in prices of bread and cereals, meat, fish, oils and fats, coffee, tea and cocoa, potatoes yam and other tubers and vegetables.

On a month-on-month basis, the Food sub-index increased by 1.52 percent in July, down by 0.47 percent points from 1.99 percent recorded in June.

The average annual rate of change of the Food sub-index for the twelve-month period ending in July 2017 over the previous twelve month average was 18.25 percent, 0.38 percent points from the average annual rate of change recorded in June (17.87)percent.

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