Inflation Drops For 18th Consecutive Month

The Consumer Price Index which measures inflation dropped by 0.09 per cent points from 11.23 per cent in June to 11.14 per cent in July, the National Bureau of Statistics says.

The NBS, in its report released on Wednesday, said this is the eighteenth consecutive disinflation in headline index.

The report reads in part, “The consumer price index, which measures inflation increased by 11.14 per cent (year-on-year) in July
2018.

“This is 0.09 per cent points less than the rate recorded in June 2018 and represents an eighteenth consecutive disinflation in headline inflation year on year.”

Meanwhile, on month-on-month basis, the headline index increased by 1.13 percent (vs. 1.24% the previous month) – the first month-on-month decline since February 2018.

Food inflation rose by 12.85 percent y/y in the review period, lower than the 12.98 percent y/y recorded in June.

“Notably, the highest increase was recorded in the prices of potatoes, yam and other tubers, vegetables, bread and cereals, fish, oils and fat and fruits. On month-on-month basis, food inflation increased at a slower pace of 1.40%, compared to the 1.57% recorded in the previous month”, NBS disclosed.

Core inflation was 10.2 percent y/y during the review period, as against 10.4 percent in June.

The highest increases were reported in the prices of medical services, carpets and other floor coverings, vehicle spare parts, domestic services and household services, pharmaceutical products, paramedical services, hairdressing saloons and personal grooming establishment, dental services, motor cars and fuels and lubricants for personal transport equipment.

On a month on month basis, the core index increased at a slower pace of 0.81 percent, 22 bps below the 1.03 percent reported in June. The report said the rise in the food index was caused by increases in prices of potatoes, yam and other tubers, vegetables, bread and cereals, fish, oils and fat and fruits.

The NBS report said inflation rate in July was highest in Kebbi (13.43 per cent), Rivers (13.09 per cent) and Kaduna (13.01 per cent), while Plateau (8.82 per cent), Ogun (8.86 per cent) and Kwara (9.63 per cent) recorded the slowest rise in headline y/y.

On a month on month basis, however, it said July inflation was highest in Kaduna (2.76 per cent), Bauchi (2.54 per cent) and Ondo (2.30 per cent), while Osun (0.23 per cent), Kogi (0.62 per cent) and Adamawa (0.65 per cent) recorded slowest rise.