Nigeria’s Inflation Rate Moderates For 4th Consecutive Month In 2021

Nigeria’s inflation rate moderated for the fourth consecutive month in 2021.

Gatekeepers News reports that inflation rate dropped slightly to 17.38 percent in July, compared to 17.75 percent recorded in June 2021.

This is 0.37 percent or 37 basis points lower than the rate recorded in June, according to the National Bureau of Statistics (NBS)’s ‘Consumer Price Index Report for July’ which was released on Tuesday.

“This implies that prices continued to rise in July 2021 but at a slower rise than it did in June 2021,” NBS explained.

On a month-on-month basis, the headline index increased by 0.93 per cent in July 2021. This was 0.13 percentage points higher than the rate recorded in June 2021 (1.06per cent).

Food inflation moderated to 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.

NBS said the rise was driven by increases in prices of milk, cheese and eggs, coffee, tea and cocoa, vegetables, bread and cereals, soft drinks, and meat.

“In July 2021, food inflation on a year on year basis was highest in Kogi (28.51%), Enugu (24.57%), and Lagos (24.04%), while Akwa Ibom (17.85%), Bauchi (17.74%) and Abuja (16.67%) recorded the slowest rise in year on year inflation,” the report said.

“On month on month basis however, July 2021 food inflation was highest in Kebbi (2.98%), Yobe (2.81) and Delta (1.98%), while Sokoto, Akwa Ibom and Imo recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).”

Gatekeepers News reports that the core inflation stood at 13.73 percent, up by 0.63 percent compared to 13.09 percent recorded in the previous month.