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Headline inflation dropped to 16.05 per cent in July from the 16.10 per cent recorded in June 2017 even as food inflation hit 20.28 per cent in July from 19.91 per cent in June 2017.

The inflation report released yesterday by the National Bureau of Statistics (NBS) in Abuja indicated that the latest food inflation represents the highest year on year increase in food inflation since the beginning of the new series in 2009.

However, the headline inflation of 16.05 per cent in July is the sixth consecutive decline in the rate of headline year on year inflation since January 2017.

On a month-on-month basis, the Headline index increased by 1.21 per cent in July 2017, 0.37 per cent points lower from 1.58 per cent recorded in June.

On a month-on-month basis, however, the Food sub-index increased by 1.52 per cent in July, down by 0.47 per cent points from 1.99 per cent recorded in June.

Core inflation which excludes the prices of volatile agricultural produce eased by 0.30 per cent in July to 12.20 per cent points from 12.50 per cent recorded in June. Core inflation similar to overall/headline inflation has declined consecutively since January 2017.

On a month-on-month basis, the Core sub-index increased by 1.00 per cent in July, 0.32 per cent points lower from 1.32 per cent recorded in June.

Similarly, a separate report on Selected food price watch data for July 2017 also released yesterday by the NBS reflected that the average price of 1 dozen of agric eggs medium size increased yearon-year by 33.09 per cent and decreased month-on-month by 3.14 per cent to N498.50 in July 2017 from N514.66 in June 2017 while the average price of agric eggs medium size (price of one) increased year-on-year by 31.16 per cent and decreased monthon-month by 2.12 per cent to N42.90 in July 2017 from N47.47 in June 2017.

The average price of 1kg of tomato increased year-onyear by 15.65 per cent and month-on-month by 5.10 per cent to N394.13 in July 2017 from N375.00 in June 2017.

Further analysis showed that the average price of 1kg of rice (imported high quality sold loose) increased year-on-year by 21.04 per cent and decreased monthon-month by 1.60 per cent to N409.20 in June 2017 from N415.84 in May 2017.

Similarly, the average price of 1kg of yam tuber increased year-on-year by 41.66 per cent and month-on-month by 0.71 per cent to N294.12 in July 2017 from N292.06 in June 2017. FLIGHT

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