Nigeria suffers highest inflation rate since March 2018

Nigeria’s inflation rate grew to 12.82% (year-on-year) in July, compared to 12.56% recorded in June 2020, the statistics office said on Monday.

The National Bureau of Statistics report shows that July Consumer Price Index rose by about 0.26 percent points higher than the 12.56 per cent recorded in June, indicating the highest rate since March 2018.

Nigeria’s inflation, a measure of living costs, has consistently increased for 11-months, rising from 11.02% in August 2019 to 12.82% in July 2020.

On a month-on-month basis, the Headline index increased by 1.25 per cent in July 2020 which is 0.04 percentage points higher than the 1.21 per cent recorded in June 2020.

The NBS said the urban inflation rate increased by 13.40 per cent year-on-year in July 2020 from 13.18 per cent recorded in June 2020, while the rural inflation rate increased by 12.28 per cent in July 2020 from 11.99 percent in June 2020.

On a month-on-month basis, the urban index rose by 1.27 percent in July 2020, up by 0.04 from 1.23 percent recorded in June 2020, while the rural index also rose by 1.23 percent in July 2020, up by 0.04
from the rate recorded in June 2020.

The report stated that the composite food index rose by 15.48 per cent in July 2020 compared to 15.18 per cent in June 2020.

The rise in the food index, NBS said, was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fruits, oils and fats, and fish.

On month-on-month basis, the food sub-index increased by 1.52 per cent in July 2020, up by 0.04 percent points from 1.48 per cent recorded in June 2020.