Nigeria’s Headline Inflation Rate Declines 37 Basis Points

Nigeria’s Headline Inflation Rate Declines 37 Basis Points

Nigeria’s headline inflation rate slowdown 37 basis points in July, says the National Bureau of Statistics (NBS) in a new report, from 17.75% in June 2021. The July reading marks the fourth consecutive month of decline following a 19 months rise due to a low base effect in 2020.

According to NBS, the July inflation rate printed at 17.38% from 17.75% in June, the level analysts considered being the slowest point since February 2021 when the inflation rate printed at 17.33%

NBS report shows that on a month-on-month basis, headline inflation moderated by 13 basis points to 0.93% driven by a decline food index.

In the period, food inflation moderated for the fourth consecutive month, declining by 80 basis points to 21.03% year on year in July 2021 compared with 21.83% in June.

Notably, the highest price increases were recorded in Milk, Cheese and Eggs, Coffee, Tea and Cocoa, Vegetables, Bread and Cereals, Soft Drinks, and Meat.

But on a month-on-month basis, food inflation grew slower by 0.86% in July as against 1.11% in the previous month.

Conversely, core inflation witnessed a surge in the period, rising 63 basis points to 13.72% year on year as against 13.09% in June 2021.

NBS revealed that pressures were most significant in the prices of Garments, Shoes and other footwear, Clothing materials, other articles of clothing and clothing accessories.

These include vehicle spare parts, Major household appliances whether electric or not, Pharmaceutical products, cleaning, repair and hire of clothing, furniture and furnishing.

Others are Medical services and Hospital services. Compared to the previous month, the core index increased by 50 basis points to 1.31% month on month in July.

Read Also: Nigeria’s Inflation Worries Ease 18 Basis Points to 17.75%

Nigeria’s Headline Inflation Rate Declines 37 Basis Points