Nigeria’s Inflation Decreased for First Time Since December 2022

Nigeria's inflation rate has decreased for the first time since December 2022.

The National Bureau of Statistics (NBS) reported that the inflation rate fell to 33.40 percent in July 2024 from 34.19 percent in June.

This marks a 0.79 percent decline on a year-on-year basis. Financial analysts had anticipated this downturn, predicting that the rate of price increases would begin to slow down.

"The picture is that the rate of increase in price level has begun to slow. Hence we are projecting that inflation will begin to decline from July to August," stated the Chief Executive Officer of Financial Derivatives back in June.

The Central Bank of Nigeria (CBN), under the leadership of Governor Olayemi Cardoso, has been proactive in its efforts to curb inflation.

The Monetary Policy Committee (MPC) has consistently raised interest rates, with the latest hike being 50 basis points to 26.75 percent in July, up from 26.25 percent in May.

Governor Cardoso assured that the MPC would continue to take necessary measures to tame inflation.

In addition to monetary policies, the Nigerian government has introduced several fiscal measures aimed at controlling inflation.

These include zero import duties on selected staple foods, which are expected to ease the cost burden on consumers.

Furthermore, the Defence Headquarters has deployed troops to farms in the North East and North Central regions to ensure a smooth farming season.

This move aims to stabilize food supply and prices, thereby contributing to the overall effort to manage inflation.

This coordinated approach between monetary policy adjustments, fiscal measures, and security interventions highlights the multifaceted strategy Nigeria is employing to tackle inflation.

As the country navigates these economic challenges, the recent decline in inflation offers a glimmer of hope for both Nigerians and international observers.