Inflation Rate in Nigeria Declines by 34bps to 21.88%
The rebased consumer price index (CPI) showed that inflation rate in Nigeria declined by 34 basis points to 21.88% in July, the National Bureau of Statistics (NBS) said in a report on Friday.
The consumer price index moderation is in line with market expectations, reflecting the local exchange rate stability in the absence of pressures from petroleum prices in the period.
Based on the CPI data released, Nigeria’s headline inflation eased by 34 bps to 21.88% y/y in July from 22.22% year on year. On a month-on-month basis, consumer prices increased to 1.99% versus 1.68% on record in June.Food inflation increased by 77 bps to 22.74% in July from 21.97%, NBS data showed.
On a month-on-month basis, food inflation slowed by 14 basis points to 3.12% from 3.25%—attributed to the rate of decrease in the average prices of Vegetable Oil, beans (White), Rice Local, Maize Flour, Guinea Corn (Sorghum), Wheat Flour, Millet Whole grain, etc.
Elsewhere, core inflation or all items excluding farm produce and energy) eased by 143bps to 21.33% y/y in July from 22.76% y/y. On a month-on-month basis, the core index moderated sharply by 149bps to 0.97%.
After two consecutive monthly increases, food inflation softened in July, dipping by 14bps to 3.12% month on month, reflecting slower price growth in Imported Food despite increased prices of m produce.
Analysts believe the appreciation of the naira supported the lower increases in prices of imported food items. Similarly, core inflation slowed by 149 bps to 0.97% m/m, supported by weaker price pressures in utilities, furnishings & household equipment, ICT, alcoholic beverages & tobacco, and insurance & financial services.
In contrast, price growth accelerated in health, clothing & footwear, recreation, sport & culture, education, restaurants & accommodation, and miscellaneous goods & services. In August, inflation is expected to remain on its disinflationary path, aided by sustained declines in energy prices as the Dangote refinery maintains its distribution strategy, which removes transportation costs for fuel marketers and large-scale consumers.
Analysts said this support could offset upward pressures from food inflation risks and seasonal FX demand during the summer months—a trend typically seen in the third quarter. Inflation Rate in Nigeria Declines by 34bps to 21.88% EU to Approve 19th Russia Sanctions Package in Sept.
