By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s inflation rate has accelerated to 8.3 percent in July from 8.2 percent recorded in June 2014 up by 0.1 percent in the review period.

This is the fifth straight month of advance in inflation figures for Nigeria, Africa’s largest economy seeing prices rise 0.7 percent in the month of July. ‘’The faster pace of price increases recorded in the headline index were as a result of an increase in multiple divisions that contribute to the headline index,’’ according to National Bureau of Statistics (NBS) July report.

NBS affirmed that on a month on month basis, price increases in the headline index eased for the second consecutive month. ‘’Prices increased by 0.65 percent in July, lower from a 0.77 percent increase in June,’’ the NBS reported.

According to the report, the slower price increase of the headline index in July was driven by a slower rise in all areas that contribute to the index.

‘’Urban prices (year on year) increased as a faster pace for the third consecutive month in July. Prices edged higher to 8.5 percent, up 0.1 percentage points from June. Rural prices have exhibited the same trend over the period increasing by 8.1 percent from 8.0 percent in June,’’ the NBS report said.

Also, on a month on month basis, the pace of increases in urban prices eased in July after advancing faster for two (2) consecutive months and urban headline  index increased by 0.70 percent, 0.1 percentage points lower from June.

The National Bureau of Statistics said the rural all-items index rose at a slower pace by 0.60 percent in July, down from 0.74 percent in June.

The NBS further affirmed that the percentage change in the average composite CPI for the twelve-month period ending in July 2014 over the average of the CPI for the previous twelve-month period was recorded at 8.0 percent, unchanged from the average twelve month rate of change recorded in June 2014.

‘’The corresponding 12- month year-on-year average percentage change for the Urban index was 8.1 percent in July, unchanged in the previous month while the corresponding Rural index eased to 7.8 percent for the Month of July,’’ NBS reported.

The Nigeria’s Central Bank had said inflation risks, an expected increase in government spending before 2015 elections and rising food costs are some of the main reasons it has retained benchmark interest rate in the month of July.

However, Kingsley Moghalu, deputy governor, financial systems stability directorate of the CBN   had said key rate will probably be held steady until after the polls.