A newly published report by the National Bureau of Statistics (NBS) indicates a decline in Nigeria’s headline inflation rate to 33.40 percent in July 2024 from 34.19 percent in June 2024.
This marks the first decrease since December 2022, when it dropped to 21.34 percent.
According to the Bureau’s CPI report for July 2024, the headline inflation rate decreased by 0.79 percentage points compared to June 2024.
A breakdown of the figures 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.
This indicates an overall increase in the headline inflation rate year-on-year for July 2024 compared to 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 per cent relative to the June 2024 headline inflation rate of 34.19 per cent. Looking at the movement, the July 2024 headline inflation rate showed a decrease of 0.8 per cent points when compared to the June 2024 headline inflation rate.
“On a year-on-year basis, the headline inflation rate was 9.32 per cent points higher compared to the rate recorded in July 2023, which was 24.08 per cent. 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).”
URBAN INFLATION
On a year-on-year basis, in July 2024, the Urban inflation rate was 35.77%, this was 9.94% points higher compared to the 25.83% recorded in July 2023. On a month-on-month basis, the Urban inflation rate was 2.46% in July 2024, this was 0.003% points lower compared to June 2024 (2.46%). The corresponding twelve-month average for the Urban inflation rate was 32.89% in July 2024. This was 10.02% points higher compared to the 22.87% reported in July 2023.
RURAL INFLATION
The Rural inflation rate in July 2024 was 31.26% on a year-on-year basis; this was 8.77% higher compared to the 22.49% recorded in July 2023. On a month-on-month basis, the Rural inflation rate in July 2024 was 2.10%, down by 0.07% points compared to June 2024 (2.17%).
The corresponding twelve-month average for the Rural inflation rate in July 2024 was 28.86%.
This was 7.82% higher compared to the 21.04% recorded in July 2023.
FOOD INFLATION
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%).