Wednesday, August 15, 2018 /09:00 AM / NBS
All Item Index
The consumer price index, (CPI) which measures inflation increased by 11.14 percent (year-on-year) in July 2018. This is 0.09 percent points less than the rate recorded in June 2018 (11.23) percent and represents an eighteenth consecutive disinflation in headline inflation year on year.
Increases were recorded in all COICOP divisions that yielded the Headline index.
On month-on-month basis, the Headline index increased by 1.13 percent in July 2018, up by 0.11 percent points from the rate recorded in June 2018 (1.24 percent). This represents the first-time month on month headline inflation has declined since February 2018.
The percentage change in the average composite CPI for the twelve months period ending July 2018 over the average of the CPI for the previous twelve months period was 13.95 percent, showing 0.42 percent point from 14.37 percent recorded in June 2018.
The urban inflation rate eased by 11.66 percent (year-on-year) in July 2018 from 11.68 percent recorded in June 2018, while the rural inflation rate remained flat at 10.83 percent in July 2018 from 10.83 percent in June 2018.
On a month-on-month basis, the urban index rose by 1.23 percent in July 2018, down by 0.01 from 1.24 percent recorded in June, while the rural index also rose by 1.18 percent in July 2018, down by 0.05 percent from the rate recorded in June 2018 (1.23) percent.
The corresponding twelve-month year-on-year average percentage change for the urban index is 14.33 percent in July 2018. This is more less 14.71 percent reported in June 2018, while the corresponding rural inflation rate in July 2018 is 13.64 percent compared to 14.08 percent recorded in June 2018.
The composite food index rose by 12.85 percent in July 2018 compared to 12.98 percent in June 2018. This represents the tenth consecutive decline in year on year food inflation since September 2017.
This rise in the food index was caused by increases in prices of Potatoes, yam and other tubers, Vegetables, Bread and cereals, Fish, Oils and Fat and Fruits
On month-on-month basis, the food sub-index increased by 1.40 percent in July 2018, down by 0.17 percent points from 1.57 percent recorded in June. This represents the first-time month on month food inflation has declined since February 2018.
The average annual rate of change of the Food sub-index for the twelve-month period ending July 2018 over the previous twelve-month average was 17.10 percent, 0.65 percent points from the average annual rate of change recorded in June (17.75) percent.
All Items Less Farm Produce
The ‘All items less farm produce’ or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.2 percent in July 2018, down by 0.2 percent from the rate recorded in June 2018 (10.4) percent. This represent the 16th consecutive decline in year on year core inflation since March 2017
On month-on-month basis, the core sub-index increased by 0.81 percent in July 2018. This was down by 0.22 percent when compared with 1.03 percent recorded in June 2018.
The highest increases were recorded in prices of Medical services, Carpets and other floor coverings, Vehicle spare parts, Domestic services and household services, Pharmaceutical products, Paramedical services, Hairdressing saloons and personal grooming establishment, Dental services, Motor cars and Fuels and lubricants for personal transport equipment.
The average 12-month annual rate of change of the index was 11.48 percent for the twelve-month period ending July 2018; this is 0.17 percent points lower than 11.65 percent recorded in June.
In analysing price movements under this section, note that the CPI is weighted by consumption expenditure patterns which differ across states. Accordingly, the weight assigned to a particular food or non-food item may differ from state to state making interstate comparisons of consumption basket inadvisable and potentially misleading.
All Items Inflation
In July 2018, all items inflation on year on year basis was highest in Kebbi (13.43%), Rivers (13.09%) and Kaduna (13.01%), while Plateau (8.82%), Ogun(8.86%) and Kwara (9.63%) recorded the slowest rise in headline Year on Year inflation.
On month on month basis however, July 2018 all items inflation was highest in Kaduna (2.76%), Bauchi (2.54) and Ondo (2.30%), while Osun (0.23%), Kogi (0.62) and Adamawa (0.65%) recorded slowest rise on a month on month all item basis in July 2018.
In July 2018, food inflation on a year on year basis was highest in Abuja (15.85%), Bayelsa (15.75%) and Imo (15.46%), while Plateau (9.40%), Bauchi (10.44%) and Kano (10.50%) recorded the slowest rise in food inflation.
On month on month basis however, July 2018 food inflation was highest in Kwara (4.57%), Kaduna (3.99%) and Imo (3.44%), while Ogun (0.16%) and Osun (0.38%)recorded the slowest rise, Kogi recorded food price deflation or negative inflation (general decrease in the general price level of goods and services or a negative inflation rate) in July 2018.
Latest 2018 NBS Reports