Nigeria’s inflation rate drops to 11.14% in July ― NBS

THE National Bureau of Statistics (NBS) on Wednesday says the Consumer Price Index (CPI), which measured inflation for July 2018 dropped to 11.14 per cent when compared with last year (year-on-year) from 11. 23 per cent recorded in June.

In its “CPI and Inflation Report’’ for July released in Abuja, the bureau said the figure is 0.09 per cent points less than the rate recorded in June.

It further disclosed that the figure showed 18 consecutive reductions in inflation rate since January 2017.

The report showed that increases were recorded in all the Classification of Individual Consumption by Purpose (COICOP) divisions that yielded the headline index.

On a month-on-month basis, NBS said the Headline Index increased by 1.13 per cent in July, down by 0.11per cent points from the rate recorded in June.

According to the bureau, the drop was the first month-on-month headline inflation decline since February 2018.

The percentage according to the NBS, changed in the average composite CPI for 12 months period ended July over the average of CPI for the previous 12 months period.

It, however, measured the CPI at 13.95 per cent in the period under review, showing 0.42 per cent point lower from 14.37 per cent recorded in June.

The ‘All items less farm produce’ or Core inflation, which excludes the prices of unstable agricultural produce stood at 10.2 per cent in July 2018, down by 0.2 per cent from the rate recorded in June 2018 (10.4) per cent.

This represents the 16th consecutive decline in year on year core inflation since March 2017.

According to the bureau, the highest increases were recorded in prices of Medical services, Carpets and other floor coverings, Vehicle spare parts, Domestic services and household services and Pharmaceutical products. Others are Paramedical services, Hairdressing saloons and personal grooming establishment, Dental services, Motorcars and Fuels and lubricants for personal transport equipment.

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The average 12-month annual rate of change of the index was 11.48 per cent for the twelve-month period ending July 2018; this is 0.17 per cent points lower than 11.65 per cent recorded in June.

Analysts from Cowry Assets Management Limited, in a flash note this morning attributed the drag in the decline in the inflation rate was due to the sticky fall in food prices recorded in July 2018 as insecurity continued to take its toll on food prices.

Meanwhile, imported food inflation remained high but fell y-o-y by 0.46 per cent to 15.22per cent in July 2018 amid appreciation of the monthly average Naira/USD rate at the parallel market segment to N360.55 in July 2018 (from N366.33 in July 2017), chiefly on higher crude oil prices.

Core inflation rate also fell y-o-y to 10.18 per cent (from 10.39% in June 2018) amid moderation in “Clothing and Footwear” inflation rate to 10.57 per cent (from 11.02% in June 2018).