The National Bureau of Statistics (NBS) has reported that Nigeria’s consumer price index (CPI), which measures inflation dropped to 11.08% in July 2019.
According to the NBS, inflation dropped by 0.14% points year-on-year, slower than the 11.22% rate recorded in June 2019.
Similarly, food inflation dropped to 13.39% from 13.56%, while core inflation dropped to 8.80% from 8.84% recorded in the previous month.
In July 2019, food inflation slowed down at 13.39% from 13.56% recorded in the previous month. The average change of the food sub-index over the 12-months average was 13.46%, which was 0.04% points higher than the average annual rate of change (13.43%) recorded in June 2019.
According to the Bureau, the rise in the food index was caused by an increase in prices of oils and fats, meat, bread and cereals, potatoes, yams and other tubers, and fish.
Nigeria’s core inflation, which proxies all items less farm produce, stood at 8.80% in July 2019 as against 8.84% the previous month. On a month-on-month basis, the core inflation sub-index increased by 0.77% in July 2019.
The Bureau revealed that the highest price increase was recorded in items such as Medical and hospital services, cleaning, repair and hire of clothing, repair of household appliances, major household appliances, domestic and household services.
The report shows that urban inflation dropped to 11.43% from 11.61% on a year-on-year basis, while the rural inflation rate increased by 10.64%. On a month-on-month basis, the urban index rose by 1.10% in June 2019, up by 0.05point.
The urban index also rose by 1.07% in July 2019, down by 0.03 points from the 1.10% recorded in June 2019. On the other hand, the rural index rose by 0.96%, down by 0.09 from the rate (1.05%) recorded in June 2019.
A closer look at the data shows that with the latest report, Nigeria’s inflation rose the slowest in over three years. Nigeria last recorded inflation rate lower than 11.08% in January 2016 when it stood at 9.62%, while it hit a high of 18.55% in December of the same year.
However, following the drop in July, it means inflation has dropped for five months in 2019. It dropped in January, February, March, June and July.