TUE 17 AUG, 2021-theGBJournal- Nigeria’s headline inflation continued its deceleration as it moderated to 17.38% y/y in July 2021 (June: 17.75% y/y) – the slowest rise since February 2021 (17.33% y/y).
The outturn is 16bps lower than Cordros’ estimate (17.54% y/y) and 12bps less than Bloomberg’s median consensus estimate (17.50% y/y). On a month-on-month basis, headline inflation moderated by 13bps to 0.93%.
Food inflation moderated for the fourth consecutive month, declining by 80bps to 21.03% y/y in July 2021 (June: 21.83% y/y). Notably, the highest price increases were recorded in Milk, Cheese and Eggs, Coffee, Tea and Cocoa, Vegetables, Bread and Cereals, Soft Drinks, and Meat. On a month-on-month basis, food inflation grew slower by 0.86% in July (June: 1.11%).
Conversely, core inflation increased by 63bps to 13.72% y/y (June: 13.09% y/y). Pressures were most significant in the prices of Garments, Shoes and other footwear, Clothing materials, other articles of clothing and clothing accessories, Vehicle spare parts, Major household appliances whether electric or not, Pharmaceutical products, Cleaning, repair and hire of clothing, Furniture and furnishing, Medical services and Hospital services.
Compared to the previous month, the core index increased by 50bps to 1.31% m/m in July.
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