The National Bureau of Statistics (NBS) has said the Consumer Price Index, (CPI) which measures inflation rate decelerated to 11.08 per cent in July 2019, a decline of 0.14 per cent from 11.22 per cent reported in June.
Analysts at Financial Derivative Company (FDC) Limited and FSDH had predicted 10.98 per cent and 11.01 per cent inflation rate for July respectively.
The bureau in its CPI report on Friday said, “On month-on-month basis, the Headline index increased by 1.01 per cent in July 2019. This is 0.06 per cent rate lower than the rate recorded in June 2019 (1.07) per cent.
“The percentage change in the average composite CPI for the 12-month period ending July 2019 over the average of the CPI for the previous 12-month period was 11.29 per cent, compared to 11.29 per cent recorded in June 2019.”
According to the report, the urban inflation rate increased by 11.43 per cent (year-on-year) in July 2019 from 11.61 per cent recorded in June 2019, while the rural inflation rate increased by 10.64 per cent in July 2019 from 10.87 per cent in June 2019.
The report stated that, “On a month-on-month basis, the urban index rose by 1.07 per cent in July 2019, down by 0.03 from 1.10 per cent recorded in June 2019, while the rural index also rose by 0.96 per cent in July 2019, down by 0.09 from the rate recorded in June 2019 (1.05) per cent.
“The corresponding 12-month year-on-year average percentage change for the urban index is 11.64 per cent in July 2019. This is less than 11.65 per cent reported in June 2019, while the corresponding rural inflation rate in July 2019 is 10.97 per cent compared to 10.99 per cent recorded in June 2019.”
The NBS report stated that composite food index rose by 13.39 per cent in July 2019 compared to 13.56 per cent in June 2019.
According to NBS, the food index rise in July was caused by increases in prices of Oils and fats, Meat, Bread and cereals, Potatoes, yam and other tubers, and Fish
The report noted that, “On month-on-month basis, the food sub-index increased by 1.26 per cent in July 2019, down by 0.10 percent points from 1.36 per cent recorded in June 2019.
“The average annual rate of change of the Food sub-index for the twelve-month period ending July 2019 over the previous 12-month average was 13.46 13.42 per cent, 0.04 per cent points from the average annual rate of change recorded in June 2019 (13.42) per cent.”
On state inflation rate profile, the report by NBS disclosed that, all items inflation on year on year basis was highest in Kebbi (15.41per cent), Kano (13.47per cent) and Zamfara (13.13per cent), while Cross River (8.87per cent), Delta (8.76per cent) and Kwara (7.93per cent) recorded the slowest rise in headline Year on Year inflation.
On month on month basis however, July 2019 all items inflation was highest in Yobe (2.06per cent), Kano (2.04per cent) and Taraba (1.84per cent), while Akwa Ibom (0.19per cent) recorded the slowest rise with Bauchi and Ondo recording price deflation or negative inflation (general decrease in the general price level of goods and services or negative inflation rate).