• Highest Since 2005
As the Bola Tinubu government continues what has been described as “bold reforms,” marked by removal of the age-long subsidy on petrol sending prices of goods and services far north in just under 70 days after he was sworn into office, Nigeria’s inflation touched a new high of 24.06% in July, according to the latest data from the National Bureau of Statistics (NBS).
Headline inflation touched its peak in all of 18 years, soaring from 22.79% in June, and was the seventh consecutive monthly growth on the back of soaring prices, especially as food inflation stood at 26.98% year-on-year from 25.25% in June.
Inflation rate rose by 1.29% between both months and 4.44% higher when compared to the 19.64% reported in the same period of last year.
As a result of the general rise in prices for the period, Urban Inflation closed the month at 25.83%, just as rural dwellers were not spared with inflation on that side of the divide at 22.49% YoY.
The 1.29% leap in in the period, according to analysts at Lagos-based Cordros Securities, is also attributed to the increases in food prices to a combination of factors, including the impeding effect of rising transport costs and currency devaluation on the food index.
Others, the company said in its first reaction to the new data, include dry spell season in the northern region as the rainfall was insufficient in the period, “and flood incidence in the southern region of the country.”
On the latter, it recalled Famine Early Warning Systems Network (FEWSNET) as saying that “flooding in Ondo, Oyo, Osun, Ekiti, Rivers, and Cross River states in early July negatively impacted crop output and infrastructures. Based on the preceding, the prices increased across the Farm produce (+98bps to 3.40% m/m), Imported food (+36bps to 2.11% m/m) and Processed food (+108bps to 3.47% m/m) sub-baskets. Likewise, on a year-on-year basis, food inflation rose to a new record high, increasing by 173bps to 26.98% (June: 25.98% y/y) – its highest print since September 2005 (29.47% y/y).”