THE inflation rate in Nigeria declined to 12.8 per cent in July 2012, the National Bureau of Statistics (NBS) has disclosed. According to a statement from the bureau, the figure is 0.1 per cent lower than the 12.9 per cent year-on-year inflation rate recorded in the economy in June.

The NBS partly attributed the changes in the index to increase in the prices of some item classes such as oils, fats, gas, bread and cereals, meat, fish, fruits and other items which relatively smaller weights in the index such as repairs of household appliances, catering services and other miscellaneous services.

“On a monthly basis, the year-on-year changes in CPI have generally been higher compared to last year, due to base effects,” the NBS said.

According to the bureau, “this is not surprising due to the fact that prices were relatively lower last year, but have remained persistently higher this year as a result of various shocks to the economy such as the partial repeal of the fuel subsidy, the increases in electricity tariff structures and higher food prices due to a rapid draw down of pantries during the planting season earlier in the year

“Although the CPI has risen, its increase has been at a slower rate which suggests that prices may be easing across the economy. For example the index recorded month-on changes of 0.75, 1.15 and 0.24 percent in the months of May, June and July respectively.

“The food sub-index recorded month-on changes of 1.2, 0.5 and 0.3 per cent during the same period, while the core index was recorded at 1.1, 1.0 and 0.1 per cent.

“On a monthly basis, the composite CPI was higher by 0.24 per cent when compared with June 2012. In July, the urban inflation rate was recorded at 15.6 per cent year-on-year while the rural index indicated a 10.7 per cent year-on-year increase. The urban all items index increased by 0.23 per cent month-on-month, while the corresponding rural index increased by 0.25 per cent, when compared with the preceding month.”

The NBS said the percentage in the average composite CPI for the 12-month period ending July 2012 over the average of CPI for the previous 12-month period was 11.6 per cent, while the percent corresponding 12 month year-on-year average percentage change for urban and rural indices was 11.8 and 11.5, respectively.

Also in July, the Composite Food Index increased year-on-year by 12.1 per cent to 138.1 points. The index was also higher than the year-on-year recorded in June of this year by 0.3 per cent.

The Bureau stated that the All Items less Farm Produce index, which excludes the prices of volatile agricultural products, rose by 15.0 per cent year-on-year, while on month-on-month basis, the core index increased by 0.1 per cent in July 2012.

It said “The marginal rise in the core index is partly attributable to higher prices of gas, and other services such as household repairs, catering and household textiles.

“The average 12 month annual rate rise of the index was 13.0 per cent for the twelve-month period ending July 2012.”