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Food prices jump after Nigeria’s inflation rate drops below 20%

By Idowu Abdullahi

The National Bureau of Statistics (NBS) has disclosed that the country’s headline inflation fell to 17.38 percent in July, representing a 0.37 per cent points when compared to 17.75 per cent recorded in June with the food index falling by 0.80 basis point to 21.03 per cent from 21.83 per cent in June.

The NBS said that the decline in food index was due to increases in prices of milk, cheese and eggs, coffee, tea and cocoa, vegetables, bread and cereals, soft drinks, and meat.

The statistics body maintained that the consumer price index (CPI) which measures inflation increased by 17.38 percent (year-on-year) in July 2021, adding that the development was 0.37 percent points lower than the rate recorded in June 2021 (17.75) percent. (This implies that prices continued to rise in July 2021 but at a slower rise than it did in June 2021).

The NBS in its Consumer Price Index (CPI) report for July released on Tuesday, noted that
increases were recorded in all COICOP divisions that yielded the Headline index.

According to the report, 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 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 percent 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 percent in July 2021, down by 0.15 points over the rate that was recorded in June 2021 (1.02 percent).”

On food inflation, the report stated:”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.

“States with the highest Year-on-Year food inflation were Kogi (28.51 percent), Enugu (24.57 percent) and Lagos (24.04 percent), while Akwa Ibom (17.85 percent), Bauchi (17.74 percent) and Abuja (16.67 per cent) recorded the slowest rise in year on year inflation.

“On month on month basis, food inflation was highest in Kebbi (2.9 per cent), Yobe (2.81 per cent) and Delta (1.9 per cent), while Sokoto, Akwa Ibom and Imo recorded price deflatio ben or negative inflation (general decrease in the general price level of food or a negative food inflation rate),” the report read.

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