Cost of Rice, Other Items Crash as Nigeria’s Inflation Drops, Data Shows Cheapest States to Buy Food
- Nigeria's inflation rate declined in July for the first time in 19 months at 33.40% from the 24.19% recorded in June
- Data from the National Bureau of Statistics (NBS) shows food inflation also declined to 39.53% compared to the over 40% recorded in June 2024
- The NBS data shows Nigerian states with the cheapest and most priced food items in the period under review
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Data from the National Bureau of Statistics (NBS) shows that the headline inflation for July 2024 eased to 33.40% compared to the 34.19% recorded in June 2024.
The July inflation showed a decline of 0.8% points compared to the June figure.
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Inflation rate for July lower than June's
The annual inflation rate stood at 9.32%, higher than the rate recorded in June, at 24.08%. This shows that the inflation rate rose in July compared to the same month in the previous year.
Also, the inflation rate in July 2024 was 2.28% lower than the one recorded in June 2024, which was 2.31%.
This development means that the rate of increase in the average price level was lower in July than in June 2024.
All items inflation in July
According to the statistics body, all-item inflation was highest in Bauchi at 46.04%, Jigawa at 40.77%, and Kebbi at 37.47%, while Benue recorded 27.28% of all-item inflation.
Meanwhile, Borno recorded the slowest rise in inflation every year.
Abuja recorded the highest monthly inflation in July, at 3.91%, Borno at 3.84%, and Enugu at 3.76%, while Taraba saw a 0.17% climb.
Kwara recorded the slowest rise in inflation at 0.62%, and Ondo recorded 0.91% every month.
Most expensive, cheapest states to buy food
The NBS report said that Sokoto emerged as the most expensive state to buy in July at 46.26%, Jigawa at 46.05%, and Enugu at 44.06%, while Adamawa recorded 33.48%, Bauchi at 35.10%, and Benue recorded the slowest rise in food inflation.
Every month, July food inflation was highest in Borno at 5.07%, Sokoto at 4.99%, and Enugu at 4.17%, while Kwara recorded a 0.51% inflation rate.
Taraba recorded the slowest rise in food inflation at 0.56% and Ondo at 0.68%.
CBN to reduce interest rate
Experts have predicted that the Central Bank of Nigeria (CBN) will reduce the country’s Monetary Policy Rate (MPR) in their next Monetary Policy Committee (MPC) meeting.
The apex bank currently pegged Nigeria’s interest rates at 26.25% for June 2024 following an increase in the country’s inflation.
Economist and data analyst John Oladele disclosed that the current inflation figure is still relatively high but provides some breathing room for households whose income was eroded due to surging inflation.
“It is still high at the currency double-digit figure. Food inflation is still high at 39.53% compared to the 2023 figure of 26.98%.
Hopefully, the federal government’s policy to tackle food inflation by providing a six-month duty-free window will crash prices.,” he said.
FG begins duty-free import of rice and other food items
Legit.ng earlier reported that the Nigerian government had already started implementing the 150-day duty-free imported window directed by President Bola Tinubu.
The move will allow Nigerians to import essential food items into the country to tame the rising food inflation.
According to the Nigerian Customs Service, the Nigerian government will forfeit about N187 billion on import duty during the policy period.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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