Nigeria News

Rising Food Prices Push Inflation to 8.3% in July

The Consumer Price Index (CPI), which measures inflation, rose to 8.3 per cent in July compared to 8.2 per cent in the previous month, according to the National Bureau of Statistics (NBS).

NBS attributed the 0.1 per cent increase in inflation to the food index, which edged higher to 9.9 per cent in the period under review from 9.8 per cent in June.

With the marginal rise, this would be the fifth consecutive month the headline index has risen in recent months largely as a result of the increase in prices of food items.

Nevertheless, core inflation which excludes the prices of volatile agricultural products slowed in July as prices rose by 7.1 per cent compared to 8.1 per cent in June. This was the slowest price increase recorded since January this year, according to the NBS.

It said urban inflation also increased at a faster pace for the third consecutive month in July as prices edged higher to 8.5 per cent, up 0.1 percentage points from the figure in June, while its rural component exhibited the same trend over the period, increasing by 8.1 per cent from 8.0 per cent in June.

According to the statistical agency: “Between February and July, movements in food prices as observed by the food sub-index have mirrored the headline index. The food index edged higher to 9.9 per cent in July from 9.8 per cent in June.
“Prices were pushed higher as a result of higher prices in the bread and cereals, meats and fish groups, while the pace of the increase was weighed upon by slower increases in the dairy, sugar, jam, honey, chocolate and confectionery; coffee, tea and cocoa groups.

“As observed by the food sub-index, food prices increased by 9.9 per cent (year-on-year) in July, marginally higher from 9.8 per cent recorded in June. This is the highest price increase observed in a year, and an advancement in the pace of price increases for the fifth consecutive month.

“During the month, increases in fruit, vegetables and potatoes, yam and other tubers groups contributed to the price increases.”

Continuing, it said: “On a month-on-month basis, price increases also slowed to this year’s low, as prices rose by 0.2 per cent, down by 0.5 percentage points from June. The increase in the core sub-index (month-on-month) was as a result of price increases across various group items in particular – actual and imputed rentals for housing; non-durable household goods; clothing materials, other articles of clothing and clothing accessories; garments and solid fuel groups.

“The average 12-month annual rate of rise of the index was recorded at 7.4 per cent for the 12-month period ending in June 2014, unchanged from the previous month’s 12-month annual rate of change.”

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