Home Business Nigerian annual inflation slows in July to 16.05% as food inflation soars

Nigerian annual inflation slows in July to 16.05% as food inflation soars

by Business News Report

Annual inflation in Nigeria slowed for a sixth month in July, easing to 16.05 per cent, but the rise in food inflation was the biggest in eight years, the National Bureau of Statistics (NBS) said in its latest report. The National Bureau of Statistics in its report said “the Consumer Price Index (CPI) which measures inflation increased by 16.05 per cent, year-on-year, in July 2017. This was 0.05 per cent points lower than the rate recorded in June (16.10) percent making it the sixth consecutive decline in the rate of headline year on year inflation since January 2017.

“Increases were recorded in all COICOP divisions that yield the headline index. On a month-on-month basis, the headline index increased by 1.21 per cent in July 2017, 0.37 per cent points lower from the rate of 1.58 per cent recorded in June. The percentage change in the average composite CPI for the twelve-month period ending in July 2017 over the average of the CPI for the previous twelve-month period was 17.47 percent, 0.11 percent point lower from 17.58 percent recorded in June 2017”.

NBS report said that selected food price watch data for July 2017 reflected that the average price of 1 dozen of Agric eggs medium size increased year-on-year by 33.09 per cent and decreased month-on-month by 3.14 per cent to N498.50 in July 2017 from N514.66 in June 2017 while the average price of piece of Agric eggs medium size increased year-on-year by 31.16 per cent and decreased month-on-month by 2.12 per cent to N42.90 in July 2017 from N47.47 in June 2017.

The average price of 1kg of tomato increased year-on-year by 15.65 per cent and month-on-month by 5.10 per cent to N394.13 in July 2017 from N375.00 in June 2017. The rate of annual inflation was 0.05 per cent lower than in June. A separate food price index showed inflation rose to 20.28 per cent in July, up from 19.91 per cent in June, the biggest year-on-year increase since 2009, the statistics office said.
“The rise in the index was caused by increases in prices of bread and cereals, meat, fish, oils and fats, coffee, tea and cocoa, potatoes yam and other tubers and vegetables,” the report said.

Meanwhile President Muhammadu Buhari has said he was delighted by the way the economy was improving after briefings from ministers and the central bank. But oil prices have risen since the low prices of 2014, leading to increased receipts and peace talks have this year halted the attacks on energy facilities in the southern Niger Delta which in 2016 cut crude production by more than a third.

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