The National Bureau of Statistics (NBS) has released its latest inflation report, revealing a slight decline in the country’s inflation rate for July 2024. The headline inflation rate fell to 33.40% from 34.19% in June 2024, marking a positive development in the nation’s economic landscape.
The headline inflation rate was 9.32% points higher year over year in July 2023 than it was in July 2023 (24.08%). This demonstrates that, in July 2024, the headline inflation rate increased (year over year) as compared to the same month the previous year.
It further stated that the headline inflation rate in July 2024 was 2.28% on a month-over-month basis, 0.03% less than the rate that was noted in June 2024 (2.31%).
This indicates that the rate of increase in the average price level in July 2024 was less than the rate of increase in June 2024.
It continued by saying that the rate of food inflation has also decreased, coming in at 39.53% as opposed to 40% in June 2024.
However, there was a 12.55% point gain year over year in comparison to the July 2023 rate of 26.98%.
“The following items saw price increases: Semovita, prepackaged yam flour, wheat flour, 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. These increases contributed to the annual rise in food inflation.
“When looking at the rate month over month, the food inflation rate for July 2024 was 2.47%, which is 0.08% less than the rate for June 2024 (2.55%). The decrease in the rate of increase in the average prices of the following products can be attributed to the fall: exercise books, textbooks, etc. (Under Books & Stationaries Class); turkey meat, minced pork, etc. (Under Meat Class); date palm fruit (Debenu), watermelon, etc.; Garri, Akpu (fufu), etc. (Under Milk, Cheese & Egg Class); and mudfish fish, fresh fish (Obokun), snail, etc. (Under Fish Class).
Overall, while challenges persist, particularly in the food sector, the slight declines in food inflation rates in July 2024 are promising signs that the economy may be gradually stabilizing.
