Food And Beverages Drive Nigeria’s Inflationary Rate At 39.53% -NBS

Nigeria has recorded a food inflationary rate of 39.53% for the month of July 2024. On a year-on-year basis, this is 12.55% points higher than the 26.98% rate recorded in July 2023, according to statistics released by National Bureau of Statistics (NBS).

The NBS mentions main drivers of inflationary rate  of staples specifically, consumables like Semovita, Yam Flour (Prepacked), Wheat Flour (Prepacked), Bread and Cereals.

Other items which combine to account for the inflationary rate are Yam, Irish Potatoes, Water Yam, Potatoes, Yam & Other Tubers, Groundnut Oil and Palm Oil.

Beverages like Milo, Bournvita, Ovaltine, Coffee, Tea & Cocoa Class), are also notable inflation drivers, the report shows.

On a month-on-month basis, the Food inflation rate in July 2024 was 2.47% which shows a 0.08% decrease compared to the rate recorded in June 2024 (2.55%).

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“The fall can be attributed to the decline in the rate of increase in the average prices of Tin Milk, Baby Powdered milk, etc (Under Milk, Cheese & egg Class), Mudfish fish, Fresh fish (Obokun), snail, etc (Under Fish Class), Date Palm fruit (Debenu)”, the NBS said

Others, according to the bureau include Watermelon, Garri, Akpu (fufu), etc (Under Bread and Cereals Class), Exercise books, Textbooks, etc (Under Books & Sta[1]tionaries Class) and Turkey meat, Minced Pork, etc (Under Meat Class)

The average annual rate of Food inflation for the twelve months ending June 2024 over the previous twelve-month average was 36.36%, an 11.90% points increase from the aver[1]age annual rate of change recorded in July 2023 (24.46%).

In July 2024, the headline inflation rate eased to 33.40% relative to the June 2024 headline in[1]flation rate of 34.19%. Looking at the movement, the July 2024 headline inflation rate

Overral, there is a decrease of 0.8% points when compared to the June 2024 headline inflation rate.

On a year-on-year basis, the headline inflation rate was 9.32% points higher compared to the rate recorded in July 2023, which was 24.08%. This shows that the headline inflation rate (year-On-year basis) increased in July 2024 compared to the same month in the preceding year

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Furthermore, on a month-on-month basis, the headline inflationary rate in July 2024 was 2.28%, which was 0.03% lower than the rate recorded in June 2024 (2.31%). This means that in July 2024, the rate of increase in the average price level was lower than the rate of increase in theaverage price level in June 2024.

The contributions of items on the Divisional level to the increase in the Headline index are presented below:

Divisional Level                                                Contribution YoY (%)

Food & Non-Alcoholic Beverages                                              17.30

Housing, Water, Electricity. Gas & Other Fuel                      5.59

Clothing & Footwear                                                                     2.55

Transport                                                                                          2.17

Furnishings & Household Equipment & Maintenance      1.68

Education                                                                                          1.32

Health                                                                                                  1.00

Miscellaneous Goods & Services                                                    0.56

Restaurant & Hotels 0.40 Alcoholic Beverage, Tobacco & Kola 0.36 Recreation & Culture 0.23 Communication 0.2