In line with analysts’ expectations, Nigeria’s headline inflation rate in July 2024 dropped to 33.40%, down from 34.19% in June 2024, as reported by the National Bureau of Statistics (NBS). This represents a 0.8% decrease from the previous month. On a year-on-year (YoY) basis, the July 2024 headline inflation rate was 9.32% points higher than the rate recorded in July 2023, which was 24.08%, indicating an increase compared to the same period in the previous year.
On a month-on-month (MoM) basis, the headline inflation rate dropped to 2.28% in July 2024 from 2.31% in June 2024. This shows that the average price level increased at a slower rate in July compared to June.
The Food inflation rate in July 2024 was 39.53% on a (YoY) basis, with a 12.55% higher compared to the 26.98% recorded in July 2023. The rise in Food inflation on a (YoY) basis was caused by increases in prices of the following items Semovita, Yam Flour (Prepacked), Wheat Flour (Prepacked), etc (Bread and Cereals Class), Yam, Irish Potatoes, Water Yam, etc (Potatoes, Yam & Other Tubers Class), Groundnut Oil, Palm Oil, etc (Oil & Fats Class) and Milo, Bournvita, Ovaltine (Coffee, Tea & Cocoa Class), etc.
The core inflation, which excludes the prices of volatile agricultural products and energy, stood at 27.47% in July 2024 on a (YoY) basis, showing a 6.99% increase compared to the 20.47% recorded in July 2023.
