Updated: July inflation slows to 42-month low of 11.08% on favourable harvest

Despite the curfew, some markets in Lagos are gradually reopening as consumers desperately try to restock on food items

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Annual inflation in Nigeria slowed to 11.08 percent in July, its lowest level in 42 months, buoyed by lower food prices on account of favourable harvest.

Figures released by the Abuja-based Statistical Agency showed inflation decelerated for second straight month, nearing the Central Bank of Nigeria’s 6-9 percent target.

Inflation, measured by consumer price index, captures changes in the prices of goods and services purchased by households over a period. On monthly basis, the rate eased to 1.01 percent in July, 0.06 percentage points lower than 1.07 recorded in the preceding month.

Food inflation trended to an eight-month low of 13.39 percent in July, even as core inflation which excludes the prices of volatile agricultural commodities further moderated to 8.8 percent to reach its lowest level in over three years.

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The Composite Price Index (CPI), which is a measure of the general change in the prices of consumer goods and services purchased by households over a period, rose by 11.08 percent on a year-on-year basis in July 2019.

This represents 0.14 percentage points lower than the rate recorded in june 2019 (11.22) percent and the lowest inflation rate recorded by the country since June 2018 when inflation rose by 11.23 percent.

In the review period, food inflation stood at 13.39 percent in July 2019 down from the 13.56 percent in June 2019 while Core inflation at 8.80 percent represents 0.4 percentage points decline from the 8.84 percent in June 2019.

“Core Inflation maintained downward trend in absence of any major shock in key CPI components like Power and Energy costs. Stable exchange rate has provided further support to core inflation decline,” Ayorinde Akinloye, a consumer goods analyst at Lagos-based CSL Stockbrokers said.

Endurance Okafor & Israel Odubola