Inflation records 18th consecutive decline to 11.14% – NBS
The Consumer Price Index (CPI) which measures inflation declined by 0.09 per cent to 11.14 per cent for the month of July, less than 11.23 per cent recorded in June 2018. This makes it 18th consecutive decline.
The National Bureau of Statistics (NBS) on Wednesday said that the urban inflation rate eased to 11.66 per cent in July 2018 from 11.68 per cent recorded in June 2018, while the rural inflation rate remained flat at 10.83 per cent in July 2018 from 10.83 per cent in June 2018.
On a month-on-month basis, the urban index rose by 1.23 per cent in July 2018, down by 0.01 from 1.24 per cent recorded in June, while the rural index also rose by 1.18 per cent in July 2018, down by 0.05 per cent from the rate recorded in June 2018 (1.23) per cent.
Increases were recorded in all COICOP divisions that yielded the Headline index, as the composite food index rose by 12.85 percent in July 2018 compared to 12.98 percent in June 2018.
This represents the tenth consecutive decline in year on year food inflation since September 2017.
This rise in the food index was caused by increases in prices of potatoes, yam and other tubers, vegetables, bread and cereals, fish, oils and fat and fruits on month-on-month basis, the food sub-index increased by 1.40 per cent in July 2018, down by 0.17 per cent points from 1.57 per cent recorded in June.
This represents the first-time month on month food inflation has declined since February 2018. The average annual rate of change of the Food sub-index for the 12 month period ending July 2018 over the previous 12 month average was 17.10 per cent, 0.65 per cent points from the average annual rate of change recorded in June (17.75) per cent.
The year-on-year rise in cost of food items was highest in Abuja, Bayelsa and Imo which had 15.85, 15.75 and 15.46 per cents respectively while Plateau, Bauchi and Kano recorded the slowest rise in food inflation with 9.4, 10.44 and 10.5 per cents respectively.
On month -on-month basis however, July 2018 food inflation was highest in Kwara, Kaduna and Imo which had 4.57, 3.99 and 3.44 per cents respectively, while Ogun (0.16 per cent) and Osun (0.38 per cent) recorded the slowest rise, Kogi recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in July 2018.
The ‘’All items less farm produce’’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.2 per cent in July 2018, down by 0.2 per cent from the rate recorded in June 2018 (10.4) per cent, representing the 16th consecutive decline in year on year core inflation since March 2017.
