August 16, 2024/Futureview Research
Headline Inflation
In July 2024, the headline inflation rate decreased to 33.40% from 34.19% in June 2024, marking a 0.8% point drop. However, on a year-on-year basis, inflation was 9.32% points higher compared to July 2023’s rate of 24.08%. Month-on-month, inflation in July 2024 was 2.28%, slightly lower than June 2024’s 2.31%, indicating a slower increase in the average price level.
Urban Inflation
The Urban inflation rate in July 2024 was 35.77%, up by 9.94 percentage points from 25.83% in July 2023. Month-on-month, it was 2.46%, almost unchanged from June 2024. The twelve-month average for Urban inflation was 32.89%, 10.02% points higher than the 22.87% in July 2023.
Rural Inflation
In July 2024, the Rural inflation rate was 31.26%, up by 8.77% points from 22.49% in July 2023. Month-on-month, it was 2.10%, a slight decrease of 0.07% from June 2024’s 2.17%. The twelve-month average Rural inflation was 28.86% in July 2024, 7.82% points higher than the 21.04% recorded in July 2023.
Food Inflation
The Food inflation rate in July 2024 was 39.53%, up by 12.55% points from 26.98% in July 2023. This increase was driven by rising prices of items like Semovita, Yam Flour (Prepacked), Wheat Flour (Prepacked) etc (Bread and Cereals Class), Yam, Irish Potatoes, etc (Potatoes, Yam & other Tubers Class), Groundnut Oil, Palm Oil and Milo, Bournvita (Coffeem Tea & Cocoa Class), etc. Month-on-month, Food inflation was 2.47%, down by 0.08% points from June 2024, due to slower price increases for items like 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), Watermelon, etc Garri, Akpu (fufu), etc (Under Bread and Cereals Class), Exercise books, Textbooks, etc (Under Books & Stationaries Class) and Turkey meat, Minced Pork, etc (Under Meat Class).
Core Inflation (All Items less Farm Produce and Energy)
In July 2024, Core inflation (excluding farm produce and energy) was 27.47%, up by 6.99% points from 20.47% in July 2023. Key contributors were higher prices for rent, intercity bus journeys, and medical services. Month-on-month, Core inflation was 2.16%, a 0.10 percentage point increase from June 2024. The twelve-month average Core inflation was 24.65%, 5.81% points higher than in July 2023.
STATE PROFILES
All Items Inflation
In July 2024, Bauchi (46.04%), Jigawa (40.77%), and Kebbi (37.47%) had the highest year-on-year All Items inflation rates, while Benue (27.28%), Delta (28.06%), and Borno (28.33%) had the lowest. On a month-on-month basis, Abuja (3.91%), Borno (3.84%), and Enugu (3.76%) saw the highest increases, with Taraba (0.17%), Kwara (0.62%), and Ondo (0.91%) having the slowest.
Food Inflation
In July 2024, Sokoto (46.26%), Jigawa (46.05%), and Enugu (44.06%) had the highest year-on-year Food inflation, while Adamawa (33.48%), Bauchi (35.10%), and Benue (36.41%) had the lowest. Month-on-month, Borno (5.07%), Sokoto (4.99%), and Enugu (4.17%) saw the highest increases, while Kwara (0.51%), Taraba (0.56%), and Ondo (0.68%) had the slowest.
