Nigeria’s inflation rate showed a slight decrease in July 2024, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) on Thursday. The headline inflation rate fell to 33.40 percent, down from 34.19 percent in June 2024. This marks a 0.8 percent point reduction in the overall inflation rate.
Despite this recent decline, inflation in Nigeria has been on a consistent upward trend over the past 18 months. The NBS report highlights that, while there was a decrease in the inflation rate from June to July, the year-on-year comparison reveals a different story. The inflation rate for July 2024 was 9.32 percentage points higher compared to July 2023, which recorded an inflation rate of 24.08 percent.
On a month-on-month basis, inflation in July 2024 rose by 2.28 percent, slightly lower than the 2.31 percent recorded in June 2024. This indicates that while prices continue to increase, the rate of this increase has slowed compared to the previous month.
Food inflation also saw a decline in July 2024. The rate dropped to 39.53 percent from 40.87 percent in June, reflecting a decrease of 0.08 percent on a month-to-month basis. This reduction in food inflation is attributed to a fall in the prices of several food items, including Garri, Akpu (fufu), and various types of fish, among others.
The NBS report explains that the decline in food inflation is due to lower average prices for items such as Tin Milk, Baby Powdered milk, Mudfish, and Fresh fish. These reductions have provided some relief to consumers who have been grappling with high food prices.
On a month-to-month basis, the food inflation rate in July 2024 was 2.47 percent, which is a 0.08 percent decrease from the 2.55 percent recorded in June 2024. This suggests a slight easing in the pace at which food prices are increasing.
However, when looking at the year-on-year comparison, food inflation was 12.55 percent higher in July 2024 than in the same month the previous year. This significant increase indicates that, although there has been some month-to-month relief, food prices are still much higher compared to the previous year.
The NBS report also noted that core inflation, which excludes food prices, decreased by 0.79 percent to 33.40 percent in July 2024, down from 34.19 percent in June 2024.
The report provides a mixed picture of Nigeria’s inflation landscape: while there is some positive movement with the reduction in both overall and food inflation rates, the year-on-year figures continue to reflect significant inflationary pressures.
As Nigeria continues to deal with high inflation rates, the data from the NBS underscores the ongoing challenges faced by consumers and the economy at large. The gradual decline in inflation offers a glimmer of hope, but the higher year-on-year rates highlight that much work remains to be done to manage inflation effectively.
