GON REPORTS SLIGHTLY LOWER CONSUMER PRICES FOR JULY

UNCLAS NIAMEY 000883 SIPDIS SIPDIS DEPT FOR AF/W, BACHMAN E.O. 12958: N/A TAGS: ECON SOCI NG SUBJECT: GON REPORTS SLIGHTLY LOWER CONSUMER PRICES FOR JULY ¶1. While popular concern and civil society protest over the cost of various consumer items - ranging from public water and electricity to cell phone rates and gasoline - remained a salient political issue over the last month, the Government of Niger's (GON) Institut National de la Statistique (INS) reported a slight decline in consumer prices during the month of July. Using a standardized index of consumer prices (IHPC) to judge costs in the city of Niamey, the INS reported that prices for its basket of standard consumer goods declined by 0.2% in July, after rising by 1.2% in June. Over the last twelve months, the INS reported that the country's average inflation rate was 3.7%, or 0.7% higher than the West African Economic and Monetary Union's recommended ceiling of 3.0%. However, INS also noted that the June and July 2006 inflation rates were, respectively, 1.2% and 2.4% lower than the rates for the same months in 2005. ¶2. The INS attributed July's changes to declining prices for two basket items: clothing and shoes, the prices of which fell by 2.7%; and, housing, water, electricity, gas, and other fuels, the prices of which fell by 0.6%. Buyers and sellers of Nigerien dietary staples likewise saw modest price fluctuations, unlike the rapid market price increases documented during last year's food crisis. The overall price of cereals declined by 0.1% in July. Millet's price per bag increased from 16,963 CFA ($33.00) in June to 17,219 in July, while 50 kg sacs of rice increased in price from 15,306 to 15,409 CFA ($30.00). Corn and sorghum prices fell, respectively, by 4.4% and 0.9%. One-hundred kg bags of either could be had for approximately $30.00. The price of gasoline, a key source of popular complaint of late, remained stable. ALLEN