Nigeria’s Inflation Drops for Seventh Consecutive Month

Data released on Friday by the Nigerian National Bureau of Statistics has shown that the inflation rate dropped from 16.05 per cent in July to 16.01 per cent in August year-on-year, making it the seventh consecutive months that the index would be declining.

On a month-on-month basis, the report said the headline index increased by 0.97 per cent in August 2017, representing a 0.24 per cent points lower than the rate of 1.21 percent recorded in June.

“The Consumer Price Index (CPI) which measures inflation increased by 16.01 per cent (year-on-year) in August 2017.

“This was 0.04 percent points lower than the rate recorded in July (16.05) percent making it the seventh consecutive decline in the rate of headline year on year inflation since January 2017.”

“On a month-on-month basis, the Headline index increased by 0.97 per cent in August 2017, 0.24 per cent points lower from the rate of 1.21 percent recorded in June.”

The NBS report stated that food inflation increased by 20.25 per cent year-on-year in July, down marginally by 0.03 per cent points from the 20.28 per cent recorded in July.

On a month-on-month basis, the report said food sub-index increased by 1.14 per cent in July, down by 0.38 percentage points from 1.52 per cent recorded in July.

Analysts have attributed the decrease to various factors such as transparency in the foreign exchange market and intervention of the Central Bank of Nigeria in ensuring liquidity in the foreign exchange market.