Di recent inflation figures for di month of July 2024 wey di National Bureau of Statistics (NBS) release on Thursday show say headline inflation rate reduce small from 34.19% in June to 33.40%.
But e still dey higher dan how e be for July of 2023 wey be 24.08%.
Also, food inflation reduce small by 0.08% from di 2.55% wey e bin dey in June, to 2.47% in July.
According to di NBS report, food inflation reduce small in July sake of “di decline for di rate of increase in di average prices of Tin Milk, Baby Powdered milk, Fresh fish, snail, Date Palm fruit, Watermelon, Garri, Akpu, Turkey meat, Minced Pork, etc”.
Pipo don dey react to dis release by di NBS and dem dey wonder how e be say inflation dey come down wen prices for market still dey very high.
One X user wey im name na @efe_wills respond to di NBS post and e ask: “Shey dis figure na wetin di streets dey tok?”
But economics sabi pipo wey follow BBC Pidgin tok explain wetin dey happen, why inflation rate reduce small even though pipo neva too dey feel am for di prices of goods and services.
Di reduction rate dey small
Tope Fasua, di special adviser to President Tinubu on economic affairs, tok say some food prices really reduce even though e small.
“Na harvest season we dey, some food items don come out, like yam, tomatoes and di likes, dia prices for market now no be as bifor, especially new yams,” e tok.
“Yams bin dey go as high as 4k per tuber, but now you go get new yams for 2,500 – 2k. Basket of tomato bin reach 150k, but now e don come down well well to less dan half of dat price.”
Fasua say pipo bargaining power dey also follow for why dem fit buy sometin costly or not.
Anoda expert for economics matter, Dr Okey Okere, tok say pipo go feel di difference if di inflation continue to dey reduce over a sustained period, like three or four months in a row.
“A reduction of just about 1% no go dey very noticeable for di market immediately, but e show say something dey happen and if e continue like dat, e go definitely reflect for prices,” e tok.
Rotus Odiri, popular business journalist for Nigeria explain am dis way: “Prices still dey rise. Bicos we don see small deacceleration no mean say prices dey come down. For Nigeria, wen prices go up, e dey be like rocket, but wen dem dey come down e dey be like feather.”
“Wetin dis mean be say, di speed wey prices dey take rise, na im e dey take decrease,” Odiri explain.
Wetin NBS data tok
Di NBS tok say dia calculation of di inflation rate dey take into consideration “740 goods and services” wey pipo dey price regularly.
“Every month, 10,534 informants for across di country (in both rural and urban areas) dey provide price data for di computation of di Consumer Price Index (CPI),” di report explain.
Dis mean to say no be only di price of food for example, or transportation dey determine di inflation rate, rather, e include evritin wey pipo dey pay for from electronics, stationery, Clothing & Footwear, healthcare, utilities, to miscellaneous goods & services like hair care and personal grooming products.
Also, for urban areas, di rate of inflation between June and July 2024 remain at 2.46% even though e reduce small by 0.003%, but e dey insignificant and pipo no go too notice am.
For rural areas, na di same shikini reduction (0.07%) from 2.17% in June to 2.10% in July.
Las las, “dis slight reduction for inflation rate in July na sign say goment dey do something and dat tin dey work. If di measures dey sustained, and if Nigeria get beta harvest dis season, Nigerians go see say prices for market go come down” Tope Fasua tok.
