By Emmanuel Elebeke

The consumer price index, (CPI) which measures inflation increased by 12.82 per cent (year-on-year) in July 2020.

This is 0.26 per cent points higher than the 12.56% rate recorded in the previous month as a result of increases recorded in all Classification of individual consumption by purpose (COICOP) divisions that yielded the Headline index.

According to the National Bureau of Statistics in its monthly data released on Monday, the highest increases in food items, prices of Medical services, Passenger transport by air, Pharmaceutical products, Hospital services, Passenger transport by road, Maintenance and repair of personal transport equipment, Paramedical services and Vehicle spare parts were mainly responsible for the increase in the July inflation.

On a month-on-month basis, the Headline index increased by 1.25 per cent in July 2020. This is 0.04 per cent rate higher than the rate recorded in June 2020 (1.21) per cent.

The percentage change in the average composite CPI for the twelve months period ending July 2020 over the average of the CPI for the previous twelve months period was 12.05 per cent, representing a 0.15 per cent point increase from 11.90 per cent recorded in June 2020.

The urban inflation rate increased by 13.40 per cent (year-on-year) in July 2020 from 13.18 per cent recorded in June 2020, while the rural inflation rate increased by 12.28 per cent in July 2020 from 11.99 per cent in June 2020.

On a month-on-month basis, the urban index increased by 1.27 per cent in July 2020, up by 0.04 from 1.23 per cent recorded in June 2020, while the rural index also rose by 1.23 per cent in July 2020, up by 0.04 from the rate recorded in June 2020 (1.19) per cent.

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The corresponding twelve-month year-on-year average percentage change for the urban index was 12.66 per cent in July 2020.

This is higher than 12.50 per cent reported in June 2020, while the corresponding rural inflation rate in July 2020 is 11.49 per cent compared to 11.36 per cent recorded in June 2020.

The composite food index rose by 15.48 per cent in July 2020 compared to 15.18 per cent in June 2020.

This rise in the food index was caused by increases in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Fruits, Oils and fats, and Fish.

On a month-on-month basis, the food sub-index increased by 1.52 per cent in July 2020, up by 0.04 per cent points from 1.48 per cent recorded in June 2020.

The average annual rate of change of the Food sub-index for the twelve-month period ending July 2020 over the previous twelve-month average was 14.63 per cent, 0.17 per cent points from the average annual rate of change recorded in June 2020 (14.46) per cent.

The ”All items less farm produce” or Core inflation, which excludes the prices of volatile agricultural produce stood at 10.10 per cent in July 2020, down by 0.03 per cent when compared with 10.13 per cent recorded in June 2020.

On a month-on-month basis, the core sub-index increased by 0.75 per cent in July 2020. This was down by 0.11 per cent when compared with 0.86 per cent recorded in June 2020.

The average 12-month annual rate of change of the index was 9.48 per cent for the twelve-month period ending July 2020; this is 0.11 per cent points higher than 9.37 per cent recorded in June 2020.

Vanguard News Nigeria.