Nigeria’s headline inflation maintained its upward trend, as it expanded by 26bps in July 2020 to 12.82 per cent y/y (June: 12.56per cent y/y), the highest since level since March 2018, the National Bureau of Statistic(NBS) on Monday disclosed.
The increase according to NBS was due to a negative surprise from food inflation. From a month ago, headline inflation increased by four basis points to 1.25 per cent, the slowest pace of price growth since March 2020.
“Food inflation rose by 30 basis points to 15.48 per cent y/y in the period under review. The seasonality effect typically associated with the onset of the planting season, as well as flooding in some parts of the country must have negatively influenced the food basket,” analysts at Cordros Research explained.
“Specifically, the rise in the food index was caused by increases in prices of Bread and Cereals, Potatoes, Yam and other tubers, Meat, Fruits, Oils and fats, and Fruits. Compared to June 2020, food inflation expanded by four basis points, to 1.52 per cent m/m,” they explained further.
Elsewhere, core inflation was down by threebasis points to 10.10 per cent y/y. Pressures were most significant in the prices of Medical services,
Passenger transport by road, Maintenance and repair of personal transport equipment, Paramedical services and Vehicle spare parts. On a month-on-month basis, the core index was down by 11 basis points to 0.75 per cent.