The National Bureau of Statistics (NBS) on Thursday announced drop in July inflation rate to 33.40 per cent.
The inflation rate, which stood at 34.19 per cent in June, recorded its first decline in 19 months owing to significant drop in food prizes.
In a report titled: “Consumer Price Index July 2024”, the NBS noted that the headline inflation indicates 0.8 per cent points decrease.
NBS report further 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. The decrease in inflation was due to the fall in the prices of foods in the period under review”.
The report further showed that on a month-on-month basis, the food inflation rate in July was 2.47 per cent which shows a 0.08 per cent decrease compared to the rate recorded in June (2.55 per cent).”
The fall can be attributed to the decline in the rate of increase in the average prices of tin milk, baby powdered milk, mudfish fish, fresh fish (Obokun), snail. Also dropped were the prices of date palm fruit, watermelon, garri, akpu (fufu), among others.
On a year-on-year basis, NBS said 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.
The document said this showed 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).
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NBS further noted that on a month-on-month basis, the headline inflation rate in July 2024 was 2.28 per cent, which was 0.03 per cent lower than the rate recorded in June 2024 (2.31 per cent).
The report said this means that in July 2024, the rate of increase in the average price level was lower than the rate of increase in the average price level in June 2024.
NBS said in July 2024, all Items inflation rate on a Year-on-Year basis was highest in Bauchi (46.04 per cent), Jigawa (40.77 per cent), and Kebbi (37.47 per cent) while Benue (27.28 per cent), Delta (28.06 per cent) and Borno (28.33 per cent) recorded the slowest rise in Headline inflation on Year-on-Year basis.
NBS noted on a month-on-month basis, however, July 2024 recorded the highest increases in Abuja (3.91 per cent), Borno (3.84 per cent), Enugu (3.76 per cent), while Taraba (0.17 per cent), Kwara (0.62 per cent) and Ondo (0.91 per cent) recorded the slowest rise on month-on-month inflation.
The report said on a year-on-year basis, in July 2024, the Urban inflation rate was 35.77 per cent, this was 9.94 per cent points higher compared to the 25.83 per cent recorded in July 2023. On a month-on-month basis, the Urban inflation rate was 2.46 per cent in July 2024, this was 0.003 per cent points lower compared to June 2024 (2.46 per cent).
NBS noted that the corresponding twelve-month average for the Urban inflation rate was 32.89 per cent in July 2024. This was 10.02 per cent points higher compared to the 22.87% reported in July 2023.
The report added rural inflation rate in July 2024 was 31.26 per cent on a year-on-year basis; this was 8.77 per cent higher compared to the 22.49 per cent recorded in July 2023.
Also, on month-on-month basis, the rural inflation rate in July 2024 was 2.10 per cent, down by 0.07 per cent points compared to June 2024 (2.17 per cent).
NBS said the corresponding 12-month average for the rural inflation rate in July 2024 was 28.86 per cent. The report noted this was 7.82 per cent higher compared to the 21.04 per cent recorded in July 2023.”