A notable decrease in Nigeria's headline inflation rate has been observed, with a drop to 33.40% in July 2024. This marks a significant shift, as the rate had consistently risen since December 2022.
According to the National Bureau of Statistics' (NBS) latest Consumer Price Index (CPI) report, the inflation rate decreased by 0.79 percentage points compared to the previous month. This downward trend is a welcome respite, as the rate had previously surged to 34.19% in June 2024.
Upon closer examination, the year-on-year inflation rate reveals a more complex picture. The rate has increased by 9.32 percentage points compared to July 2023, indicating a persistent upward trend. However, the month-on-month rate tells a different story, with a marginal decrease of 0.03 percentage points.
The NBS report also highlights regional disparities in inflation rates. Urban areas experienced a higher inflation rate of 35.77%, while rural areas saw a rate of 31.26%. These variations underscore the need for targeted economic policies to address regional differences.
The Food inflation rate remains a concern, with a year-on-year increase of 12.55 percentage points. However, a closer examination of the data reveals a slight decrease in the month-on-month rate, indicating a potential easing of food price pressures.