The National Bureau of Statistics (NBS) yesterday released the Consumer Price Index (CPI) for the Month of July stating that increases in the prices of bread, meat and cereals have pushed up the country’s inflation rate to 8.3 per cent
This is the fifth consecutive month of year-on-year increases in the inflation index.
The CPI report noted that the 8.3 per cent recorded in July represents an increase of 0.1 percentage point over the 8.2 per cent recorded in June.
Since a decline of the headline index in January, prices continue to trend upwards, however, at a slow pace increasing by 0.1 percentage points (year-on-year) each month between February and July.
The report said on a month-on-month basis, the highest price increases were recorded in bread and cereals, fruit, and meat groups.
It said, “In July 2014, the CPI which measures inflation, edged higher from the previous month.
“Prices rose by 8.3 per cent (year-on-year), up by 0.1 percentage points from 8.2 per cent recorded in June
“This is the fifth consecutive month of year-on-year increases in the Headline index. 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.”
It added however that on a month on month basis, the increases in urban prices eased as Urban Headline index in July increased by 0.70 per cent, indicating 0.1 percentage points lower from the June
Similarly, the NBS noted that rural prices also exhibited the same trend over the period, increasing by 8.1 per cent from eight percent in the preceding month.
As was the trend with urban prices, the Rural All-items index rose at a slower pace by 0.60 percent in July, down from 0.74 percent in June.
The Governor of the Central Bank of Nigeria (CBN) had last month identified pressure from food/core inflation inflation and the risks that could emanate from the likely increase in aggregate spending in the run-up to the 2015 general elections as pressures points to monetary policy stability.
“We are monitoring the situation, monitoring the liquidity situation in the money market; monitor the spending of Nigerians and government to the run up to the elections.
“And as we begin to see that the macro economic variables are moving in the direction that we expect, you will begin to see the reversal in interest rates in the direction where we want to be,” he had said.