Hope rises for stable economy as inflation rate drops for 6th consecutive time

Hope that Nigeria’s economy is regaining its stability emerged Monday as the National Bureau of Statistics (NBS) reported that the inflation rate for July 2017 dropped for the 6th consecutive time to 16.05% since January.

“The inflation report for July 2017 reveals that headline inflation has again reduced to 16.05 per cent (year-on-year) in July 2017, compared to 16.10 percent in June 2016.

“This makes it the sixth consecutive decline in the rate of headline year on year inflation since January 2017,” the bureau said.

The percentage change in the average composite CPI for the twelve-month period ending in July 2017 over the average of the CPI for the previous twelve-month period according to the NBS, was 17.47 per cent, which is 0.11 percent point lower from the 17.58 percent recorded in June 2017.

The Urban index rose by 16.04 per cent in July 2017, down by 0.11 percent point from 16.15 per cent recorded in June, and the Rural index increased by 16.08 per cent in July from 16.01 per cent in June.

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The bureau noted that the Food Index increased by 20.28 per cent in July, up by 0.37 per cent points from the rate recorded in June (19.91 per cent), representing the highest year on year increase in food inflation since the beginning of the new series in 2009.

Further analysis showed that the rise in the index was caused by increases in prices of bread and cereals, meat, fish, oils and fats, coffee, tea and cocoa, potatoes yam and other tubers and vegetables.

According to Yemi Kale, Statistician-General of the Federation, states that witnessed high food prices in July included Ondo, Ogun Niger and Nassarawa, Onion and Tomatoes prices in Ondo; mudfish/tomatoes prices in Ogun; and chicken in Niger month on month.

The NBS noted that increases were recorded in all COICOP divisions that yield the Headline Index.
The average price paid by consumers for premium motor spirit (petrol) increased by 0.3% year-on-year and decreased by -1.4% month-on-month to N148.2 in July 2017 from N150.3 in June 2017.

States with the highest average price of premium motor spirit (petrol) were Yobe (N170), Borno (N160.50) & Adamawa (160).

States with the lowest average price of premium motor spirit (petrol) were Bauchi (N145.4), Lagos (N145.3) and Abuja, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Ekiti, Kaduna, Kano, Katsina, Kebbi, Ogun, Ondo, Osun & Sokoto (N145.0).

Also, average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) increased by 0.46% month-on-month and 7.49% year-on-year to N2,226.21 in July 2017 from N2,215.96 in June 2017.

States with the highest average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Bauchi (N2,400.00), Taraba (N2,376.34) & Adamawa (2,375.00).

States with the lowest average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Kogi (N2,100.98), Ekiti (N2,075.00) and Delta N1,771.43).

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