Home Price Index rises, July CPI unchanged

The RBI has raised its inflation outlook to 4.8% in the second half of 2018-19 from its earlier projection of 4.7

There was a sharp drop in the rate of inflation last month, and it's now at its lowest level since the start of past year.

Consumers had also to endure an increase in food and non-alcoholic drink prices, which rose by 2.3 percent.

In its latest report released yesterday in Abuja, the National Bureau of Statistics (NBS) indicated that the Consumer Price Index (CPI) which measures inflation declined by 0.09 per cent in July, 18th consecutive reduction in inflation since January 2017.

As for year-on-year comparison, retail inflation had increased by 2.36 percent in July last year. "Despite the truckers' strike, food inflation eased considerably in July 2018, benefiting from the base effect", she said.

Whilst there continues to be upward pressure from increasing oil costs, on both petrol and oil for heating, travel costs have been causing less pressure on inflation than in previous months.

Tej Parikh, an economist at the Institute of Directors, said: "These figures show that the cost of living squeeze is not yet a thing of the past".

Households were hit particularly hard with a rise in transport ticket and fuel prices as they embarked on summer holidays, with the costs climbing by 5.7 percent compared with the same month a year before.

John Hawksworth, chief economist at PwC, said real household income growth will remain "subdued" over the next year.

Retail inflation fell to nine-month low of 4.17 per cent in July on account of slowdown in prices of vegetables and fruits, said government data released today.

Inflation rose last month, largely due to higher transport costs, new official figures show. "This is likely to weigh down consumer spending, posing fresh problems for embattled high street businesses", he added.

The report indicated that the percentage change in the average composite CPI for the 12-month period ending July 2018 over the average of the CPI for the previous 12-month period was 13.95 per cent, showing 0.42 per cent point from 14.37 per cent recorded in June 2018.

The average United Kingdom house price was £228,000 in June - £1,000 higher than in May and £6,000 higher than in June 2017.

Despite the rise for CPI, wage growth is still outstripping inflation.

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