Prices of goods and services especially food items have continued in the open market worsening the poverty situation in the country. The National Bureau of Statistics confirmed the development in its latest report saying “This implies that prices continued to rise in July 2021 but at a slower rise than it did in June 2021. According to NBS report “The consumer price index, (CPI) which measures inflation increased by 17.38 per cent (year-on-year) in July 2021. This is 0.37 per cent points lower than the rate recorded in June 2021 (17.75) percent. Increases were recorded in all COICOP divisions that yielded the Headline index. On month-on-month basis, the Headline index increased by 0.93 percent in July 2021. This was 0.13 percentage points lower than the rate recorded in June 2021 (1.06) percent.
“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 percent, showing 0.37 percent point rise from 15.93 percent recorded in June 2021. The urban inflation rate increased by 18.01 percent (year-on-year) in July 2021 from 18.35 percent recorded in June 2021, while the rural inflation rate increased by 16.75 percent in July 2021 from 17.16 percent in June 2021. On a month-on-month basis, the urban index rose by 0.98 per cent in July 2021, down by 0.11 points against the rate recorded in June 2021 (1.09 percent), while the rural index also rose by 0.87 per cent in July 2021, down by 0.15 points over the rate that was recorded in June 2021 (1.02 percent). The corresponding twelve-month year-on-year average percentage change for the urban index was 16.89 percent in July 2021. This is higher than 16.51 percent reported in July 2021, while the corresponding rural inflation rate in July 2021 was 15.73 percent compared to 15.36 percent recorded in June 2021.
“The composite food index rose by 21.03 percent in July 2021 compared to 21.83 percent in June 2021. This implies that food prices continued to rise in July 2021 but at a slower speed than it did in June 2021.) This rise in the food index was caused by increases in prices of Milk, Cheese and Eggs, Coffee, Tea and Cocoa, Vegetables, Bread and Cereals, Soft drinks, and Meat. On month-on-month basis, the food sub-index increased by 0.86 percent in July 2021, down by 0.25 percent points from 1.11 percent recorded in June 2021. The average annual rate of change of the Food sub-index for the twelve-month period ending July 2021 over the previous twelve-month average was 20.16 percent, 0.44 percent points from the average annual rate of change recorded in June 2021 (19.72) percent. The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 13.72 percent in July 2021, up by 0.63 percent when compared with 13.09 percent recorded in June 2021. On month-on-month basis, the core sub-index increased by 1.31 percent in July 2021. This was up by 0.50 percent when compared with 0.81 percent recorded in June 2021.
The highest increases were recorded in 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. The average 12-month annual rate of change of the index was 12.05 percent for the twelve-month period ending July 2021; this is 0.29 percent points higher than 11.75 percent recorded in June 2021.
“In July 2021, all items inflation on year on year basis was highest in Kogi (22.49), Bauchi (22.04%) and Kaduna (20.42%), while Akwa Ibom and River (15.78%), Delta (15.40%) and Kwara (14.53%) recorded the slowest rise in headline Year on Year inflation. On month on month basis however, July 2021 all items inflation wash highest in Kebbi (2.27%), Yobe (2.19%) and Bauchi (2.03%), while Ebonyi, Akwa Ibom and Bayelsa recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate). In July 2021, food inflation on a year on year basis was highest in Kogi (28.51%), Enugu (24.57%) and Lagos (24.04%), while Akwa Ibom (17.85%), Bauchi (17.74%) and Abuja (16.67%) recorded the slowest rise in year on year inflation. On month on month basis however, July 2021 food inflation was highest in Kebbi (2.98%), Yobe (2.81) and Delta (1.98%), while Sokoto, Akwa Ibom and Imo recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate)”.
