Nigeria’s inflation rate has recorded its first decrease in 19 months, according to the National Bureau of Statistics (NBS). In July 2024, the inflation rate fell to 33.40%, down from 34.19% in June 2024. This drop marks a slight improvement in the economic situation, though the year-on-year headline inflation remains notably high.
Despite the monthly decline, July 2024’s inflation rate is significantly higher compared to the same period last year. The year-on-year headline inflation rate surged by 9.32 percentage points from 24.08% in July 2023.
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The month-on-month headline inflation rate also saw a slight decrease to 2.28% in July 2024, down from 2.31% in June 2024, suggesting a deceleration in the rate of price increases.
Food inflation experienced a reduction, falling to 39.53% in July 2024 from 40% in June 2024. However, year-on-year food inflation increased by 12.55 percentage points from 26.98% in July 2023. The rise in food prices has been driven by higher costs for staples such as Semovita, Yam Flour, Wheat Flour, Groundnut Oil, Palm Oil, and various beverages.
On a month-on-month basis, food inflation also declined slightly to 2.47% in July 2024 from 2.55% in June 2024, due to a slower rise in prices for products like Tin Milk, Baby Powdered Milk, Fresh Fish, and some fruits and meats.