The National Bureau of Statistics (NBS) just published the July 2019 inflation report, showing that Nigeria’s headline consumer price (CPI) index tapered significantly from prior month. Specifically, headline inflation was 11.08% y/y in July, declining from 11.22% y/y in June.
The reading is 2bps lower than Bloomberg consensus average estimate of 11.10%. On a month-on-month basis, the headline index rose at a slower pace of 1.01% (June 2019: 1.07%). Food inflation rose by 13.39% y/y in the review period, a slower increase relative to 13.56% y/y recorded in June.
Notably, the highest increases were recorded in the prices of Oils and fats, Meat, Bread and cereals, Potatoes, yam and other tubers, and Fish. On a month-on-month basis, food inflation increased at a slower pace by 1.26%, relative to the 1.36% recorded in the previous month.
Core also inflation tapered to 8.80% y/y (vs 8.84 in June). The highest increases were recorded in the price Medical and Hospital services, Cleaning, Repair and hire of clothing, Repair of household appliances, Major household appliances, Domestic and household services. On a m/m basis, the core index increased by 0.77%, 8bps higher than 0.85% reported in May.