Inflation rate reduces slightly in July to 33.40% – NBS

Omeiza Bilal

Nigeria’s headline inflation rate slightly eased to 33.40 per cent in July 2024, down from the 34.19 per cent recorded in June 2024, according to the latest figures from the National Bureau of Statistics (NBS).

This marks a 0.8 percentage point decrease, offering some relief after months of steadily rising prices.

Despite the month-on-month decline, inflation remains a significant concern for the country. The year-on-year inflation rate for July 2024 stood at 33.40 per cent, a sharp 9.32 percentage points higher than the 24.08 per cent recorded in July 2023.

This indicates a substantial increase in the average price level over the past year.

On a month-on-month basis, inflation in July 2024 was 2.28 per cent, marginally lower than the 2.31 per cent recorded in June 2024.

This suggests that while prices continued to rise, the rate of increase was slightly slower than in the previous month.

The easing of inflation in July, though modest, comes as the country grapples with economic pressures, including fluctuating currency values, high import costs, and persistent supply chain disruptions.

However, the high year-on-year figure underscores the ongoing challenges faced by consumers and businesses alike.

As Nigeria continues to navigate these economic hurdles, the slight reduction in inflation could signal the beginning of a stabilization phase, though it remains to be seen if this trend will continue in the coming months.

Commenting on the development, Don at the Nasarawa State University, Prof Uche Uwaleke, said the easing in the headline inflation rate is due chiefly to the moderation in food inflation occasioned by the harvest season.

According to Prof. Uwaleke, with food component & non-alcoholic beverage accounting for 17.30 per cent (out of 33.40% – pressure point remains food), it was time the Central Bank of Nigeria began to seek ways to support the federal government’s effort to boost food production.

“What all these point to is that it is time for the CBN to recognize the real pressure points and shift some attention to how the fiscal authorities can be supported to boost food production beginning with a halt in MPR hike next month,” he said.

He added that the drought reported in many parts of the North partly explains the high rate of food inflation in States like Sokoto (46.26%) and Jigawa (46.05%).

In the CPI report, food inflation was highest in Sokoto state (46.26%) and lowest in Adawama (33.48%).