Inflation in Nigeria decreases in July, as food prices increase

Nigeria’s statistics office reported on Friday that the country’s annual inflation rate (NGCPIY=ECI) decreased for the fourth consecutive month in July, from 22.22% in June to 21.88% in July.

Following a reweighting of the basket of goods the statistics agency uses to measure price movements and an update to the base year for its calculations, inflation has been declining this year.

Prior to the rebasing last year, the price index had risen to above 34%.

Inflation of food, a major contributor to the headline rate, was 22.74% year over year (NGFINF=ECI) in July as opposed to 21.97% the previous month.

For the third consecutive month, the central bank has maintained its monetary policy rate at 27.50% (NGCBIR=ECI) and opened a new tab, promising to keep it there until inflation threats subside.

While acknowledging that inflation was decreasing in July, Central Bank Governor Olayemi Cardoso stated that the necessity to maintain disinflation was the basis for rate-setting decisions.