According to figures from the National Bureau of Statistics (NBS), Nigeria’s headline inflation rate decreased in July after rising steadily in previous months, marking the first decline in 19 months. The consumer price index data showed that headline inflation had decreased to 33.40%.
The inflation result was skewed to the food basket, which fell 134 basis points to 39.53% year on year, while the core basket rose six basis points to 24.47 percent.
Inflation dropped for the first time since December 2022, falling to 33.40% in July 2024 from 34.19% in June. On a month-on-month basis, headline inflation fell by 3 basis points to 2.28% from 2.31% in June.
Food inflation moderated in the period as supply improved. The slowdown can be attributed to the decline in the rate of increase in the average prices of Tin Milk, Baby Powdered milk, etc
Thus, on a month-on-month basis, food inflation settled at 2.47%, relative to the 2.55% month on month recorded in June.
However, core inflation (All items less farm produce and energy) rose by 6 basis points to 27.47% from 27.40% in June.
The highest increases were recorded in prices of Rents, Bus Journey intercity, Journey by motorcycle, etc (under Passenger Transport by Road Class), and Accommodation Service, Laboratory service, X-ray photography, Consultation Fee of a medical doctor, etc (under Medical Services Class).
Similarly, the core index increased by 10 basis points to 2.16% month on month in July compared to the previous month (2.06% m/m).
