Nigeria's annual inflation rate eased in July to 21.88% from 22.22% in June, marking the fourth month of decline, data from its statistics agency showed on Friday.

Inflation has been on a downward trend this year after the statistics agency updated the base year for its calculations and re-weighted the basket of items it uses to gauge price trends.

The price index had soared to more than 34% last year before the rebasing.

Food inflation, a key driver of the headline rate, stood at 22.74% year on year in July compared with 21.97% the month before.

The central bank last month kept its monetary policy rate on hold at 27.50% for the third consecutive time this year, pledging to maintain its current stance until inflation risks recede.

Central Bank Governor Olayemi Cardoso acknowledged in July that inflation was easing but said rate-setting decisions were based on the need to sustain disinflation.