Inflation rate drops, as prices of foodstuff comes down

Gbeleyi Abayomi

According to The Consumer Price Index (CPI) which measures inflation, inflation in the country dropped to 11.08 per cent (year-on-year) in July compared to 11.22 per cent in June, according to the National Bureau of Statistics (NBS).

In one of the used in measuring the index, The prices of food items witnessed a decline in Ondo and Ogun as the consumer price index, which measures inflation, came in at 11.08%; 0.14 percentage points lower than the 11.22% recorded in June.

In the CPI/Inflation report released by the National Bureau of Statistics on Friday, Inflation measures the rate of increase in the prices of goods and services within a period. A drop in inflation rate does not necessarily translate to a drop in prices.

“In July 2019, food inflation on a year on year basis was highest in Kebbi (17.75%), Ekiti (16.23%) and Adamawa (16.00%), while Delta (10.60%), Bayelsa (10.43%) and Kogi (10.36%) recorded the slowest rise,” the report read.

“On month on month basis however, July 2019 food inflation was highest in Yobe (2.82%),Taraba (2.56%) and Ekiti (2.38%), while Kogi (0.06%) recorded the slowest rise with Ogun and Ondo recording food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative
inflation rate).”

All the indices that contribute to the CPI witnessed a slowdown — same as June.
On a year-on-year basis, Urban inflation was put at 11.43% as against 11.61% in June; rural inflation at 10.64% as against 10.87% in the preceding month.

“The composite food index rose by 13.39% in July 2019 compared to 13.56% in June 2019. The All items less farm produce or Core inflation, which excludes the prices of volatile agricultural produce stood at 8.80% in July 2019, down by 0.04% when compared with 8.84% recorded in June 2019.”

However, the Central Bank of Nigeria and federal government are still hopeful of a single-digit inflation rate with the latter benchmarking inflation at 9.98% in the 2019 budget.

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