New information has come to our attention over the possible increase in the oil price in the market.
According to the report from the National Bureau of Statistics in its July 2020 Consumer Price Index, an explanation was made on a possible inflation rate as much as 12.82% for the last month. This consumer price index report was released to the public on Monday.
The experts believe the hike in petrol price is responsible for the recorded 12.82% inflation in July
According to the report, the rate recorded in the month of July is 0.26% higher than what was recorded in June this year. The headline index is as a result of the recorded increase in every COICOP division. The headline index for the month-on-month basis bumped by an estimated 1.25% in July.
This newly released figure is a slight 0.04% increase in the recorded rate of 1.21% in June. The change in the rate for the annual composite CPI ending last July over the previous 12-month CPI average was 12.05%. This figure indicates an increase of 0.15% from 11.9% recorded in June.
The video below explains why the fuel price was increased at the beginning of July and its effects on the economy, which ultimately contributed to this inflation rate.
Nigeria raises petrol price for July
The inflation rate in the urban areas has also faced a 13.4% increase in July from the recorded 13.18% in June. On the other hand, the inflation rate in the rural area has also increased from 11.99% recorded in June to 12.28% in July.
The urban index on a month-on-month basis has risen in July by 1.27%, which is 0.04% bump from the recorded 1.23% in June. The Rural index saw a rise of 1.23% last month as compared to the 1.19% recorded in June. By implication, the 12-month (year-on-year) average change in percentage rate for the urban index in July was 12.66%.
This figure – 12.5% is higher than what was on June’s report. The corresponding inflation rate in the rural areas is 11.49% in July, which is higher than the 11.36% in June.
Experts from the Financial Derivative Company mentioned the main reason for such inflation in their monthly economic publication this week, for the month of July. According to the FDC economists, headed by Bismack Rewane, it stated the major inflation factor which was the reaction of the suppliers to the 20.4% increase in the petrol price to ₦148.7 per liter.