The rate of inflation in the United Kingdom fell sharply in July to a 17-month low largely on the back of lower energy prices, official figures showed Wednesday, a welcome development for hard-pressed households struggling during the cost of living crisis.

The Office for National Statistics said the annual rate of inflation, as measured by the consumer price index, was 6.8% in July, its lowest level since February 2022, the month Russia invaded Ukraine and sent energy prices surging.

The decline from June’s 7.9% rate was in line with economists’ expectations.

The statistics agency said the fall was largely driven by lower energy prices as last year’s sharp increases fell out of the annual comparison. It said that food price inflation, which also spiked sharply in the wake of Russia’s invasion of Ukraine, eased too.

Though the decline in the headline rate of inflation will be welcome news for hard-pressed households, it’s unlikely to derail market expectations that the Bank of England will raise interest rates again next month, especially as wages are rising at a record high. Wednesday’s figures also showed that the core rate of inflation, which strips out volatile items such as energy and food, remains high.

Earlier this month, the bank, which is tasked with achieving a 2% inflation rate, raised its benchmark interest rate to a fresh 15-year high of 5.25% and hinted that it would stay high for some time to bring down persistently high inflation.

Russia strike hit a grain terminals in Ukraine’s southern Odesa region Wednesday, local officials said, damaging storage facilities and ports along the Danube River that Kyiv has increasingly used for grain transport to Europe after Moscow broke off a key wartime export deal through the Black Sea.

At the same time, a loaded container ship stuck at the port of Odesa since Russia’s full-scale invasion more than 17 months ago set sail and was heading through the Black Sea to the Bosporus along a temporary corridor established by Ukraine for merchant shipping.

Ukraine’s economy, crunched by the war, is heavily dependent on farming. Its agricultural exports, like those of Russia, are also crucial for world supplies of wheat, barley, sunflower oil and other food that developing nations rely on.

It was the latest attack amid weeks of aerial strikes as Russia has targeted the Danube delta ports, which are only about 15 kilometers (10 miles) from the Romanian border. The Danube is Europe’s second-longest river and a key transport route.

Meanwhile, the container ship departing Odesa was the first vessel to set sail since July 16, according to Oleksandr Kubrakov, Ukraine’s deputy prime minister. It had been stuck in Odesa since February 2022.

Global shares were trading mixed Wednesday amid worries over discouraging data on China, as well as over the future of the U.S. economy.

Stock market report shows France’s CAC 40 edged up 0.4% in early trading to 7,292.89, while Germany’s DAX rose 0.2% to 15,799.93. Britain’s FTSE 100 was little changed, inching down less than 0.1% to 7,387.74.

U.S. shares were set to drift higher with Dow futures up 0.2% at 35,073.00. S&P 500 futures gained 0.2% to 4,463.00.

But benchmarks fell in Asia earlier in the day.

New Zealand’s central bank left its benchmark interest rate unchanged at 5.5% on Wednesday. The Reserve Bank of New Zealand’s monetary policy committee said the headline inflation rate had declined, but core inflation remained too high. The committee said it would take a prolonged period of subdued spending to reduce inflation pressure. The New Zealand dollar was little changed on the news, trading at around US $0.60.

“A recent set of disappointing economic data out of China has not been encouraging for the region,” said Yeap Jun Rong, market analyst at IG.

The Vice President, Kashim Shettima has lauded Google’s N1.2 billion grant initiative for the Tinubu administration’s 1 million jobs scheme.

The Vice President stated this when he received in audience some executives of Google – a leading global technology company, at the Presidential Villa.

According to the Vice President, the announcement of a grant of N1.2 billion to support the Tinubu administration’s digital jobs initiative was commendable and worthy of emulation by other companies.

Earlier in his remark, the Director of Google West Africa, Olumide Balogun said the company was excited about the Tinubu administration’s vision of creating one million digital jobs and was committing over N1.2 billion in grants to support the initiative.

He said the company through the programme would provide digital skills to over 20,000 youths and women to enhance and improve their lives and livelihoods, and also enable several startups to grow and create thousands of jobs in the sector.

On his part, Google Africa’s Director of Government Relations and Public Policy, Charles Murito, said the company remains committed to investing in digital infrastructure across Africa, noting that digital transformation in the continent can be the driver of the targeted technology jobs.

The Google initiative is designed to train 20,000 Nigerian women and youth in digital skills. This initiative aligns with President Bola Tinubu’s administration’s commitment to increasing the participation of young Nigerians in the digital economy by creating 1 million digital jobs.

The delegation from Google also includes Programme Manager, Google Africa, Ms Oluwatamilore Oni; the Government Affairs and Public Policy Manager, Adewolu Adene and Communications and Public Affairs Manager for Google West Africa, Taiwo Kola-Ogunlade, among others

Nigeria’s decision to close its border with Niger Republic following the military coup in the former francophone West African country has resulted in huge losses for those involved in the shipment of food and other perishable consumer goods.

The Nigerian Custom Service had earlier confirmed closed all land borders to Niger Republic following ECOWAS Directives.

Trucks and buses conveying  goods have been held up at the border for days, piling up costs, disrupting supply chains, and delaying delivery deadlines 

LN247 News Correspondent sent in this report from Katsina state, one of the seven Nigerian states bordering the Niger Republic.

Katsina state has 2 major border points with Niger Republic – Jibiya and Kongolam. The two locations are typically very busy, with the link roads filled with delivery trucks and buses carrying raw food items, grains, animals, and other consumer goods. 

But the situation has not been the same since Nigeria decided to close its border with its neighbor 

Businesses around the border communities have largely been at a standstill, as trucks loaded with goods have been stuck at the borders for almost two weeks.

Foodstuffs like garri, beans, wheat, tiger nuts, and dates are loaded in these trucks. But it’s been an endless wait for the drivers and owners of the goods. They cannot drive out of Nigeria, neither can they gain entry into Niger Republic, even when the destination country is just literally in plain sight 

Abubakar Alhaji is a dealer in foodstuffs and chairman of the grain sellers living in the Jibiya border area. He says the situation has resulted in a spike in the prices of grains 

According to him, a bag of maize now goes for N48,000, beans N46,000, while a bag of rice now sells for N38,000.

Chairman, Bus drivers & transport association Hamza Lawal says, Automobile engineers along the border area are also not spared the effect of the border lockdown. Another businessman, Yahaya Isah who has been engaging in imports and exports to Niger Republic and Benin Republic for over 15 years, explains how the border closure  will disrupt the supply chain in the affected countries.

Many young men make a living off delivery trucks. Abdunaser Yusuf, Ismail Abdullahi, and Badamasi Muhammed are truck boys who are paid to load up trucks, accompany them to their destination, and help in evacuating goods from the trucks.  They have spent all their savings and are now as static as their truck is. 

They are all hoping the political situation is resolved as soon as possible to enable them to go back to their normal business lives.

Nigeria’s inflation rate rose to 24.08% in July 2023, the highest in years, Amid shortage of foreign exchange.

The National Bureau of Statistics (NBS) said in its Consumer Price Index (CPI) report released on Tuesday; The July 2023 rate showed an increase of 1.29% points when compared to the previous month’s which was 22.79%,

The CPI measures the rate of change in prices of goods and services.

On July 25, 2023, the Central Bank of Nigeria (CBN) raised the Monetary Policy Rate (MPR), which measures interest rate, from 18.5 percent to 18.75%.

The interest rate increase occurred amid soaring food prices and rising cost of transportation occasioned by the removal of subsidy on Premium Motor Spirit (PMS) known as petrol with the price per litre jumping from N184 to about N600, more than 200% hike.

The apex bank said “hiking the interest rate has made a lot of difference in moderating the rate of inflation”.

To address the forex shortage in the country with a dollar exchanging at over N900 to the naira, Acting CBN Governor, Folashodun Shonubi, on Monday, said the apex bank would take certain steps in the next few days to improve the liquidity in the market.