Nigeria’s inflation and annual food price drop

Nigeria’s inflation rate dropped from 14 per cent in July to 12.4 per cent in August 2008, according to the National Bureau of Statistics. The annual increase in food prices also fell from 20.9 per cent in August last year to 18.8 per cent in the same month this year. The drop in inflation, the first time such a decrease was being recorded in five months, is being attributed to declining food prices. Rising food prices is a major contributor to the country’s high inflation rate.