The rate at which prices of goods and services rise in the country have continued its downward trend as the latest inflation figures released by the National Bureau of Statistics put the Consumer Price Index at 17.38 per cent.
This is 0.37 per cent points lower than 17.75 per cent rate recorded in June 2021 and implies that although prices continued to rise in July 2021 it was at a slower rate than it did in June 2021. This is also the slowest rise since February this year when it began to decline.
On month-on-month basis, the headline index increased by 0.93 percent in July 2021, 0.13 percentage points lower than 1.06 per cent recorded in June 2021. The percentage change in the average composite CPI for the twelve months period ending July 2021 over the average of the CPI for the previous twelve months period was 16.30 per cent, showing 0.37 per cent point rise from 15.93 per cent recorded in June 2021.
The urban inflation rate increased by 18.01 percent (year-on-year) in July 2021 from 18.35 per cent recorded in June 2021, while the rural inflation rate increased by 16.75 per cent in July 2021 from 17.16 per cent in June 2021.
Food inflation moderated for the fourth consecutive month, declining by 80bps to 21.03 per cent year on year in July 2021 compared to 21.38 per cent in June. The highest price increases were recorded in Milk, Cheese and Eggs, Coffee, Tea and Cocoa, Vegetables, Bread and Cereals, Soft Drinks, and Meat. On a month-on-month basis, food inflation grew slower by 0.86 per cent in July as against 1.11 per cent in June.
Kogi state had the highest food inflation on a year on year basis at 28.51 per cent, while Enugu and Lagos recorded 24.57 and 24.04 per cents respectively. The slowest food inflation was recorded in Akwa Ibom, 17.85 per cent, Bauchi 17.74 per cent and Abuja 16.67 per cent.
On month on month basis however, July 2021 food inflation was highest in Kebbi, 2.98 per cent, Yobe, 2.81 per cent and Delta, 1.98 per cent, while Sokoto, Akwa Ibom and Imo recorded price deflation or negative inflation which is general decrease in the general price level of food or a negative food inflation rate.
Conversely, core inflation increased by 63bps to 13.7 per cent from 13.09 per cent recorded in June. Pressures were most significant in the prices of Garments, Shoes and other footwear, Clothing materials, other articles of clothing and clothing accessories, Vehicle spare parts, Major household appliances whether electric or not, Pharmaceutical products, Cleaning, repair and hire of clothing, Furniture and furnishing, Medical services and Hospital services.