The average change in the prices of foods and services reduced in July compared to June, the statistics bureau, NBS, has said.
According to the NBS, the Headline Inflation reduced to 11.08 per cent in July from 11.22 per cent in June.
Food Inflation reduced from 13.56 per cent in June to 13.39 per cent in July while the Core Inflation reduced from 8.84 per cent in June to 8.80 per cent in July.
When compared to the 1.36 per cent recorded in June, the food sub-index decreased to 1.26 per cent recorded in July 2019, giving 0.10 per cent points.
“The average annual rate of change of the Food sub-index for the twelve-month period ending July 2019 over the previous twelve-month average was 13.46 13.42 percent, 0.04 percent points from the average annual rate of change recorded in June 2019 (13.42) percent” it said.
Increases were also recorded in all COICOP divisions that yielded the Headline index. COICOP refers to the Classification of Individual Consumption by Purpose.
On a month-on-month basis, the Headline Index increased by 1.01 per cent in July 2019. This is 0.06 per cent rate lower than the rate recorded in June 2019 (1.07) percent.
The percentage change in the average composite CPI for the twelve months period ending July 2019 over the average of the CPI for the previous twelve months period was 11.29 per cent.
The report revealed also that urban inflation rate increased by 11.43 per cent in July 2019 when compared to the 11.61 per cent recorded in June 2019, while the rural inflation rate increased by 10.64 per cent in July 2019 from 10.87 per cent in June 2019.
On a monthly basis, the urban index rose by 1.07 per cent in July 2019, down by 0.03 from 1.10 per cent recorded in June 2019, while the rural index also rose by 0.96 percent in July 2019, down by 0.09 from the rate recorded in June 2019 (1.05) per cent.
The corresponding twelve-month yearly average percentage change for the urban index is 11.64 per cent in July 2019.
This is less than 11.65 per cent reported in June 2019, while the corresponding rural inflation rate in July 2019 is 10.97 per cent compared to 10.99 per cent recorded in June 2019.
The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 8.80 per cent in July 2019, down by 0.04 per cent when compared with 8.84 per cent recorded in June 2019.
When compared to the previous month, the core sub-index increased by 0.77 per cent in July 2019. This was down by 0.08 per cent when compared with 0.85 per cent recorded in June 2019.
Despite government findings,the highest increases were recorded in the prices of medical and hospital services.
Also cleaning, repair and hire of clothing, repair of household appliances, major household appliances, domestic and household services, recorded price increase
The average 12-month annual rate of change of the index was 9.52 per cent for the twelve-month period ending July 2019; this is 0.12 per cent points lower than 9.64 per cent recorded in June 2019.
The latest inflation figures from the Nigerian economy are certainly good news for the Central Bank of Nigeria (CBN) and the economy as a whole, FXTM Senior Research Analyst, Lukman Otunuga, said, while commenting on the development.
“Inflation in Africa’s largest economy dropped to its lowest in a year at 11.1 per cent last month as food prices and services reduced in July, compared to June. Further signs of inflation cooling during the third and fourth quarter of 2019 should present the CBN an opportunity to re-join the global easing bandwagon – ultimately supporting domestic economic growth.
“While the exact timings of the rate cut remain uncertain, it now remains a matter of when, rather than if. Lower rates in Nigeria have the potential to stimulate consumption which accounts for roughly 80 per cent of GDP.”