The National Bureau of Statistics (NBS) has reported a decline in Nigeria’s headline inflation rate to 33.40 percent in July 2024 from 34.19 percent recorded in June 2024, despite the rising price of goods and services in the country.
This marks the first decline in the headline inflation rate since December 2022, when it last dropped to 21.34 percent.
According to the NBS, food inflation rate in July 2024 was 39.53 percent on a year-on-year basis, showing 12.55 percentage points higher compared to the rate of 26.98 percent recorded in July 2023
The NBS in its CPI report for July 2024, released on Thursday said the headline inflation rate decreased by 0.79 percentage points in July 2024 compared to June 2024.
A breakdown of the figure shows that on a year-on-year basis, the rate was 9.32 percentage points higher than in July 2023, when it stood at 24.08 percent.
This represents an increase in the headline inflation rate on a year-on-year basis for July 2024 compared to the same month in the previous year.
On a month-on-month basis, the headline inflation rate in July 2024 was 2.28 percent, slightly lower than the 2.31 percent recorded in June 2024.
The NBS stated, “In July 2024, the headline inflation rate eased to 33.40 percent relative to the June 2024 headline inflation rate of 34.19 percent. Looking at the movement, the July 2024 headline inflation rate showed a decrease of 0.8 percent points when compared to the June 2024 headline inflation rate.
“On a year-on-year basis, the headline inflation rate was 9.32 percent points higher compared to the rate recorded in July 2023, which was 24.08 per cent. This shows 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).”
The Urban inflation rate on a year-on-year basis in July 2024, was 35.77 percent, indicating 9.94 percent points higher compared to the 25.83 percent recorded in July 2023.
On a month-on-month basis, the Urban inflation rate was 2.46 percent in July 2024, this was 0.003 percentage points lower compared to 2.46 percent recorded in June 2024.
The corresponding 12-month average for the Urban inflation rate was 32.89 percent in July 2024, representing 10.02 percentage points higher compared to the 22.87 percent reported in July 2023.
The Rural inflation rate in July 2024 was 31.26 percent on a year-on-year basis; this was 8.77 percent higher compared to the 22.49 percent recorded in July 2023.
On a month-on-month basis, the Rural inflation rate in July 2024 was 2.10 percent, down by 0.07 percentage points compared to 2.17 percent recorded in June 2024, while the corresponding 12-month average for the Rural inflation rate in July 2024 was 28.86 percent, representing 7.82 percent higher compared to the 21.04 percent recorded in July 2023.
The Food inflation rate in July 2024 was 39.53 percent on a year-on-year basis, 12.55 percentage points higher compared to the rate of 26.98 percent recorded in July 2023.
The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following items Semovita, Yam Flour (Prepacked), Wheat Flour (Prepacked), etc (Bread and Cereals Class), Yam, Irish Potatoes, Water Yam, etc (Potatoes, Yam & Other Tubers Class), Groundnut Oil, Palm Oil, etc (Oil & Fats Class) and Milo, Bournvita, Ovaltine (Coffee, Tea & Cocoa Class), etc.
On a month-on-month basis, the Food inflation rate in July 2024 was 2.47 percent which shows a 0.08 percent decrease compared to the rate of 2.55 percent recorded in June 2024.
The NBS attributed the fall to the decline in the rate of increase in the average prices of Tin Milk, Baby Powdered milk, etc (Under Milk, Cheese & egg Class), Mudfish fish, Fresh fish (Obokun), snail, etc (Under Fish Class), Date Palm fruit (Debenu), Watermelon, etc Garri, Akpu (fufu), etc (Under Bread and Cereals Class), Exercise books, Textbooks, etc (Under Books & Stationaries Class) and Turkey meat, Minced Pork, etc (Under Meat Class).
The average annual rate of Food inflation for the 12 months ending June 2024 over the previous 12-month average was 36.36 percent, an 11.90 percentage points increase from the average annual rate of change of 24.46 percent recorded in July 2023.

RELATED ARTICLESMORE FROM AUTHOR