Nigeria Inflation Jumps 17.1 Percent in July

Cost of goods and services in Nigeria continued to rise after several measures by the Central Bank of Nigeria to ease the economic gridlock in the nation and boost capital importation needed to offset the shortfall created by forex scarcity.

The consumer price index which measures inflation rate increased by 17.1 percent year-on-year in July, the National Bureau of Statistics reported. This is 0.6 percent higher than 16.5 percent recorded in the preceding month, and the highest in over 11 years.

According to the National Bureau of Statistics, “increases were recorded in all COICOP divisions which contribute to the headline index reflecting higher prices across the economy. The pace of the increase in the headline index was however weighed upon by a slower increase in three divisions; Health, Transport, and Recreation and Culture divisions.”

The gauge of food rose 15.8 percent on a yearly basis in July — 0.5 percent lower from what was obtained in June.

“Prices however increased at a slower pace across a few groups within the Food sub-index namely Milk, Cheese and Eggs; Oils and Fats; and Fruits. In addition, imported foods as reflected by the Imported Food Sub-index increased by 0.4% points from June to 20.5% in July.”

However, prices from the energy sector continue to be the largest increases reflected in the Core sub-index. In the month under review, the Core sub-index rose 0.7 percent to 16.9 percent from 16.2 percent recorded in June.

On a monthly basis, the headline index increased, albeit at a slower pace for the second consecutive month in July.

The index surged by 1.3 percent in July, 0.4 percent from 1.7 percent recorded in June.